Last July Methanex estimated about 40 positions could disappear from 2004 in the wake of the devastating Netherland Sewell and Associates report on remaining Maui reserves, which forced Methanex to cut its New Zealand production by about 60-65% and to essentially run on non-Maui gas.
It is known Methanex had hoped the majority of those 40 people originally scheduled to lose their jobs could have moved across the Tasman to work on the Burrup project. Now that number has jumped to around 70 in light of the continuing bleak outlook for New Zealand gas and the scrapping of the revised 1.3 million-tonne Burrup plant.
However, the optimism of former Asia-Pacific boss and now Methanex president Bruce Aitken almost seems infectious. "Things are not too bad for New Zealand and we are confident we will operate at 40% rates again next year," NZ public affairs manager Gerry Kennedy told EnergyReview.Net today.
"Every employee has a guaranteed position until the end of 2003, although we have been preparing the organisation for 2004 as it is not sustainable to run at less than half rates and keep a full complement of staff.
"In 2004, we will function with 70 positions less than 2003," she conceded.
Aitken has said his corporation is continuing to work on a number of confidential initiatives to secure gas for next year and admits Methanex NZ will be a keen bidder for the 100PJ of McKee-Mangahewa gas, almost all of the present recoverable reserves, that Todd Energy is putting out to tender.
Rumours have Methanex prepared to pay more than double its Maui gas prices, of about $NZ2.20-2.70 per GJ, perhaps even up to $NZ6 per GJ, to secure enough gas to keep one of three Taranaki trains operating next year.
However, it is not known for how long Methanex can afford to pay such high prices, with world methanol prices already softening from their recent highs. The average realised price for Methanex the half-year ended June 30 was $US232 per tonne and last Friday spot prices in the Asia-Pacific region were between $US208-219 per tonne.
The average Methanex methanol price for last year was $U155 per tonne.
