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Methanex to Indefinitely Idle Titan Plant as Gas Supply Contract Fails
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Key Takeaways
MEOH will indefinitely idle its Titan plant after failing to agree on a new natural gas contract.
Titan has 860,000 tons of annual capacity and will begin preservation as its contract expires in Q3.
MEOH says Titan is not contributing to adjusted EBITDA, and shutdown costs are not expected to be material.
Methanex Corporation (MEOH - Free Report) has announced that it will indefinitely idle its Titan methanol plant in Trinidad and Tobago after failing to agree on a new natural gas contract. The facility, which has an annual production capacity of 860,000 tons, will begin the preservation process as its existing contract is due for expiration in the third quarter of 2026.
The preservation of the plant will maintain the option to restart operations if market conditions considerably improve in the future. Its Atlas methanol plant, with a 63.1% economic interest, will remain indefinitely idled in a preserved state.
The company acknowledged the decision to be difficult but necessary to focus on preserving long-term shareholder value. The challenging environment caused by structural imbalances in Trinidad and Tobago's natural gas market has made operations commercially unviable. The company, along with the continued efforts of the Government of Trinidad and Tobago and the National Gas Company to address the country's gas supply challenges, is trying to overcome the period and safely preserve the facility.
The company noted that Titan is not currently contributing to its adjusted EBITDA or adjusted Free Cash Flow and does not expect the shutdown to result in material cash costs. Any updates to production or financial guidance will be announced with Methanex's second-quarter financial results.
MEOH shares have gained 44.5% over the past year compared with the industry’s 2% decline.
Image Source: Zacks Investment Research
MEOH’s Zacks Rank & Key Picks
MEOH currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Albemarle Corporation (ALB - Free Report) , Dow Inc. (DOW - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.98 per share, indicating a 1,743.04% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed one, with an average surprise of 74.5%. ALB’s shares have jumped 106.3% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 34 cents per share, indicating a 17.24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%. DOW’sshares have gained 80.6% over the past year.
View the Zacks #1 Rank List
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Methanex to Indefinitely Idle Titan Plant as Gas Supply Contract Fails
Key Takeaways
Methanex Corporation (MEOH - Free Report) has announced that it will indefinitely idle its Titan methanol plant in Trinidad and Tobago after failing to agree on a new natural gas contract. The facility, which has an annual production capacity of 860,000 tons, will begin the preservation process as its existing contract is due for expiration in the third quarter of 2026.
The preservation of the plant will maintain the option to restart operations if market conditions considerably improve in the future. Its Atlas methanol plant, with a 63.1% economic interest, will remain indefinitely idled in a preserved state.
The company acknowledged the decision to be difficult but necessary to focus on preserving long-term shareholder value. The challenging environment caused by structural imbalances in Trinidad and Tobago's natural gas market has made operations commercially unviable. The company, along with the continued efforts of the Government of Trinidad and Tobago and the National Gas Company to address the country's gas supply challenges, is trying to overcome the period and safely preserve the facility.
The company noted that Titan is not currently contributing to its adjusted EBITDA or adjusted Free Cash Flow and does not expect the shutdown to result in material cash costs. Any updates to production or financial guidance will be announced with Methanex's second-quarter financial results.
MEOH shares have gained 44.5% over the past year compared with the industry’s 2% decline.
Image Source: Zacks Investment Research
MEOH’s Zacks Rank & Key Picks
MEOH currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Albemarle Corporation (ALB - Free Report) , Dow Inc. (DOW - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
While NUE and DOW sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.98 per share, indicating a 1,743.04% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed one, with an average surprise of 74.5%. ALB’s shares have jumped 106.3% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 34 cents per share, indicating a 17.24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%. DOW’sshares have gained 80.6% over the past year.