‘Challenging’ gas situation in Trinidad for Methanex

The natural gas situation in Trinidad and Tobago in the near term is challenging, Rich Sumner, CEO of methanol producer Methanex, said during the company’s third quarter earnings call.

The Vancouver-based company's assets in the Caribbean country are its wholly-owned 875,000t/y Titan plant and the Atlas plant, in which it has a 63.1% interest or 1,085,000t/y capacity.

Sumner said that the tight gas market in Trinidad is reflected in the short term of the new gas contract signed with the National Gas Company (NGC) of Trinidad and Tobago for Titan.

Read NGC and Methanex sign agreement for gas supply

Titan is currently offline and expected to restart in September 2024, the same month that Atlas will be idled when a 20-year gas supply agreement ends.

“We remain committed in working with the NGC and the government to secure long-term economic gas supply,” added the executive, who pinned hopes on efforts underway in Trinidad to boost gas production.

Output from Methanex’s operations in Trinidad totaled 287,000t in Q3 compared with 248,000t in the previous quarter and 249,000t in 3Q22.

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The group also has plants in Chile, where production totaled 168,000t last quarter versus 173,000t in 2Q23 due to seasonal gas limitations during the southern hemisphere winter.

Methanex, however, raised this year’s Chile guidance to 0.9-1Mt from 0.8-0.9Mt because of improved gas availability from Argentina.

Sumner pointed to investment of pipeline infrastructure in Argentina to connect the Vaca Muerta and Austral basin gas developments.

When asked about participation in the marine fuel segment, the CEO said that Methanex has inked several MOUs with major shipping companies related to green, blue and conventional methanol.