Energy Minister Stuart Young met with Colin Bain, the managing director and president of Methanex Trinidad and Tobago at the Ministry’s office at the International Waterfront Complex in Port of Spain yesterday.
In a news release, the Ministry said the discussions surrounded Trinidad and Tobago’s strategic position in Methanex’s global portfolio, as being poised to supply both the domestic blended fuel market and the global shipping markets.
During the meeting Bain provided an update on the global operations of the Vanacover, Canada-headquartered company with a special focus on its operations within Trinidad and Tobago.
According to the Ministry statement, Minister Young said the T&T Government would remain open to collaborating with Methanex and all energy sector stakeholders to drive international investments to Trinidad and Tobago.
Minister Young also provided his own update and insight into the Government’s plans and initiatives which are all aimed at strengthening Trinidad and Tobago’s energy sector and its future sustainability.
The release stated Minister Young would continue to engage the stakeholders in Trinidad and Tobago’s energy sector which has broadened the collaboration between stakeholders and the government.
On October 13, 2023, Methanex announced that it had signed a two-year natural gas agreement with the National Gas Company of Trinidad and Tobago (NGC) for its idled, wholly owned, Titan methanol plant to resume operations in September 2024. Titan’s production capacity is 875,000 tonnes per year.
At the same time, the company announced its intention to idle the Atlas methanol plant (“Atlas”) in September 2024, when its legacy 20-year natural gas agreement expires. Methanex owns 63.1 per cent of Atlas, which has a capacity of 1,085,000 tonnes per year capacity.
In the news release, Methanex president Rich Sumner said: “Our decision to restart Titan and cease operations at Atlas was based on economic considerations, including significantly lower capital requirements at Titan compared to Atlas.
“The new gas price and lower production volume in Trinidad will reduce annual adjusted EBITDA and free cash flow capability, starting in 2025 and compared to 2023, by approximately US$80 million and US$40 million, respectively, across a range of methanol prices.”