Largest gas user Methanex will close

If you want to develop your listening skills, try these tasks as you listen to the text. The answers are at the bottom of this page. Thanks to Natasha Groves for preparing the tasks.

If you want to listen and read, just scroll down to the News story.

Use the vocabulary list to check the meanings of some words before you listen.

Vocabulary

announce – to officially tell people something, especially a plan or decision

methanol – a type of alcohol but not for drinking. It is used in a variety of industrial and household products. Its chemical symbol is CH3OH

ban – to say that something must not be done

a ban – (noun) an official order that stops something being done or used

hibernation – a state similar to deep sleep in which some animals spend the winter. The meaning in the context of this news story is explained in the story

hydropower – electricity produced using the power of water

Try these activities while listening

1. Listening for main ideas

First, just listen to the text, taking notes if you wish. What information can you catch during this first listening?

2. Now listen again and answer the following questions:

  1. Why will Methanex close its plant in Taranaki next year?
  2. How long has Methanex been operating in Taranaki?
  3. How much of New Zealand’s natural gas production does Methanex take?
  4. What did the Labour-led Government do in 2018?
  5. Will Methanex close the plant completely?
  6. When is gas used to generate electricity in New Zealand?
  7. How many jobs will be lost?
  8. What did the Mayor of New Plymouth say?

News story

On 2 September, the company Methanex announced that it will close its plant in Taranaki at the end of February 2027, because operations in New Zealand are no longer sustainable.

Methanex is a Canadian-owned company that has been operating in Taranaki for more than 30 years. It is the only manufacturer of methanol in New Zealand. 95 percent of its methanol is exported to customers in the Asia Pacific region. Methanex is the largest gas user in New Zealand, taking between 30 to 40 percent of the country’s natural gas production. However, there is a problem with New Zealand’s gas supplies. Production has declined rapidly in the last few years, and very little new gas has been discovered. This is partly because the Labour-led Government banned new oil and gas exploration in 2018. Another reason is that, even though the current Government has lifted the ban, it takes a long time to find new gas fields and to develop a reliable supply from them.

Methanex said that New Zealand’s declining natural gas supply has made it unsustainable for them to continue their operations. They will not close the plant completely but instead will put it into hibernation. That means they can reopen it in the future if circumstances change. It said it has arranged to sell its gas contracts to another company. Although it did not say which company, Genesis Energy has announced that it has secured extra gas from March 2027 to December 2029. This is good news for New Zealand’s energy security, as gas is used to generate electricity when there is not enough from hydropower and wind generation.

Methanex employs around 300 people. Its plant closure means these jobs will be lost. It said that it will support staff during the transition period. The Mayor of New Plymouth said that it is unlikely that people who lose their jobs will find similar work, so they may have to leave the region or the country to find new jobs. It will also have an impact on other businesses, such as the engineering industry which supports the plant as well as restaurants and cafes.

If you want to learn more about this topic, listen to Gas and electricity in NZ from August 2024.

Answers – you don’t have to write a complete sentence as long as you have the key idea in your answer.

a. Why will Methanex close its plant in Taranaki next year?

    Because operations in New Zealand are no longer sustainable

    b. How long has Methanex been operating in Taranaki?

    More than 30 years

    c. How much of New Zealand’s natural gas production does Methanex take?

    30 to 40 percent

    d. What did the Labour-led Government do in 2018?

    It banned new oil and gas exploration

    e. Will Methanex close the plant completely?

    No. They will put it into hibernation so they can reopen it in the future if circumstances change

    f. When is gas used to generate electricity in New Zealand?

    When there is not enough from hydropower and wind generation

    g. How many jobs will be lost?

    Around 300

    h. What did the Mayor of New Plymouth say?

    It is unlikely that people who lose their jobs will find similar work, so they may have to leave the region or the country to find new jobs.

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