05:47 PM EDT, 08/12/2024 (MT Newswires) -- Methanex ( MEOH ) unveiled late on Monday commercial arrangements over the short term to provide its contracted natural gas into the New Zealand electricity market.

As a result, the company is temporarily idling its manufacturing operations in New Zealand until the end of October. The arrangements are structured to provide a base price to the company for each unit of delivered gas with further incremental shared value depending on electricity pricing over the period.

The arrangements will likely "positively impact" Methanex's ( MEOH ) Q3 and Q4 earnings, with after-tax proceeds expected to "meaningfully exceed" the margin lost on New Zealand methanol production.

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