Methanex, the Canadian Methanol giant, is unlikely to revive its mothballed Titan plant in Trinidad and Tobago anytime soon, raising the possibility of relocation. Despite the company’s CEO, Rich Sumner, expressing some hope during an investor call in February, the past six months have shown no progress, and the latest investor call did not shed any light on the future of the plant. The Titan facility was acquired by Methanex in 2003, and it was idled in March 2020 in response to reduced global manufacturing and methanol demand caused by the pandemic. In January 2021, Methanex announced that Titan would remain idle indefinitely due to the inability to reach a natural gas supply agreement. The company’s latest financial reports indicate that the plant is still idle.
During the investor call in February, Sumner mentioned discussions with the National Gas Company of Trinidad and Tobago (NGC) regarding Titan and another facility called Atlas. He expressed optimism about progress in these discussions and mentioned positive news such as the U.S. government granting a license for Trinidad and Venezuela to develop the Dragon Gas field. However, in the second-quarter earnings call in April, the possibility of relocating the plant was mentioned, although Methanex stated that their main focus was securing enough natural gas to bring the idle plants back online.
The lack of natural gas availability and the increase in the cost of acquisition for the NGC were cited as reasons for the indefinite idling of the Titan plant. Furthermore, the shifting terms of natural gas contracts in Point Lisas to short-term agreements present challenges for companies in planning their long-term operations. The shortage of natural gas and the unfavorable pricing and contract terms make it unlikely for the Titan plant to restart under current circumstances.
Former energy minister Kevin Ramnarine expressed a pessimistic view, stating that Titan’s idling is unlikely to change as long as the shortage of natural gas persists and the pricing and contract terms remain unfavorable. This is unfortunate for Trinidad and Tobago, as the plant has been idle for almost three years.
In conclusion, Methanex’s Titan plant in Trinidad and Tobago is unlikely to be revived in the foreseeable future. The challenges of securing natural gas supply, increasing acquisition costs, and unfavorable contract terms have hindered progress. The possibility of relocating the plant was mentioned, but the main focus remains on securing enough gas to bring the existing idle plants online. The idling of the Titan plant has persisted for several years, with no indication of a potential restart in sight.
