The pending review of the Crown Minerals Act provides “an opportunity to ensure that the industry in New Zealand is effectively governed to encourage investors, like Todd, to choose to invest their money in New Zealand rather than in other countr
Oil and gas association PEPANZ says news the Todd Corporation has inked a 10 year gas supply agreement with Methanex New Zealand, highlights the importance and benefits of oil and gas development for New Zealand.
Vancouver-based Methanex said yesterday it plans to restart the second methanol plant at its Motunui site, with production starting mid year and adding up to 650,000 tonnes of incremental capacity per year. Methanex has signed a 10-year agreement with NBR Rich List Todd family-owned Todd Energy to supply natural gas for up to half of the 1.5 million tonnes of annual capacity at the Motunui site, which has been idle since 2004.
“In any language, $860 million of cash injected into the local economy will make a real difference.” This is real money, creating genuine long term jobs, and generating export earnings on a significant scale,” PEPANZ chief executive David Robinson says.
He said Todd Corporation and Methanex’s efforts to re-establish the mothballed methanol train is the type of initiative New Zealand needs to maintain current standards of living, reduce government borrowing and pay off debt.
“The decision to invest considerable funds such as these takes courage, particularly when a return on those funds is not guaranteed,” Mr Robinson says.
He adds that oil and gas is the fourth largest export earner for New Zealand and that the pending review of the Crown Minerals Act provides “an opportunity to ensure that the industry in New Zealand is effectively governed to encourage investors, like Todd, to choose to invest their money in New Zealand rather than in other countries”.
