The Methanex plant in Waitara Valley. Photo: Google maps
The country's largest gas user Methanex is proposing shutting down its Taranaki methanol plant for the foreseeable future, which would result in job losses.
Methanex has been talking to staff about the loss of 70 jobs, New Plymouth Mayor Neil Holdom confirmed.
The company employs about 300 workers in New Zealand.
There are two plants owned by Methanex in New Zealand and Holdom said it had proposed to go down to one single plant.
Its Taranaki plant has been closed until the end of October, with the gas sold to Contact Energy and Genesis Energy.
Methanex had started consulting on how to move from a two-plant operation in New Zealand to one for the "foreseeable future", managing director Stuart McCall said.
McCall said this was to match the current gas outlook.
"This is a disappointing outcome for us. It means we are likely to lose many valued and experienced people."
In terms of how many jobs were likely to be impacted, McCall said a structure had been shared with staff and plans would be finalised at the beginning of October.
The decision has come almost three years after Methanex shut down its Waitara Valley plant in 2021, McCall said.
"Policy settings since 2018 have not been conducive to sustain gas supplies at sufficient levels to operate more than one plant.
"The impact of under-investment and the lack of success of the upstream activities that have been undertaken have driven this decision and have contributed to the recent energy crisis."
Methanex would continue to operate one plant in New Zealand, McCall confirmed.
"We remain committed to our long-standing role in the country's energy sector; however, our primary concern right now is the well-being of our people and their families."