Methanex (TSX:MX) turns off the lights at the Titan facility in Trinidad

• Following a decision to restructure its operations in Trinidad, Methanex (MX) says activities at its Titan methanol facility will be suspended indefinitely
• The restructuring is in pursuit of a one-plant operation that will reduce costs while the company looks to secure a longer-term gas supply
• As a result, approximately 60 employees and full-time contractors will be stood down
• Also located in Trinidad, the Atlas facility will not be affected and will continue to operate under a natural gas supply agreement that expires in 2024
• Methanex is currently up 3.04 per cent to C$61.44 per share

Following a decision to restructure its operations in Trinidad, Methanex (MX) says activities at its Titan methanol facility will be suspended indefinitely.

The restructuring comes as the Vancouver-based company pursues a one-plant operation, having been unable to secure a longer-term natural gas agreement in the face of prevailing economic uncertainty.

Titan, which has an annual operating capacity of 875,000 tonnes, has been suspended since March 16, 2020, and now roughly 60 employees and full-time contractors will be stood down.

Methanex says these measures will reduce costs while it continues its efforts to secure long-term gas supply.

However, the company stressed that the operational suspension would not affect its 63.1 per cent owned Atlas facility – also located in Trinidad – and that it would continue as normal with its own gas supply agreement that expires in 2024.

“We remain committed to doing business in Trinidad and Tobago and we believe that we will be able to secure an economic longer-term natural gas agreement for Titan in the coming years,” said John Floren, President and CEO of Methanex

“Our operations in Trinidad are well located to supply global methanol markets and are an important component of our global production network. We are taking the necessary steps to maintain Titan to ensure a safe and efficient restart of the plant when a longer-term gas agreement is reached,” he added.

The company’s share price saw a fall of almost 75 per cent from mid-January to mid-March last year as the COVID-19 pandemic tore up markets around the world, but it has since staged a come back of around 335 per cent, tipping it beyond its pre-virus value.

Methanex is currently up 3.04 per cent to C$61.44 per share at 9:51am EST.