Todd-Methanex deal boosts jobs and growth
Todd Corporation Group CEO, Jon Young, said today that a Todd subsidiary had signed a Gas Supply Agreement with Methanex New Zealand Ltd which is expected to have significant economic benefits for both Taranaki and New Zealand.
The 10 year agreement, which is scheduled to start flowing gas in July 2012, will enable Methanex New Zealand Ltd to restart the second methanol manufacturing plant (train) at its Motunui facility, north of New Plymouth.
The gas will be sourced primarily from the Mangahewa field in North Taranaki, which is wholly owned and operated by Todd Energy.
“The appraisal and development of the Mangahewa field is an exciting project that we expect will have positive implications for the regional economy and the wider national interest.”
“However, we recognise that there is still a lot of work to be completed on field appraisal and development to support this agreement. This includes up to 25 new gas wells and a substantial expansion of our existing McKee plant.” Mr Young says.
Studies conducted by Business and Economic Research Ltd (BERL) show that the investment that Todd and Methanex are making will add considerably to New Zealand’s GDP, and create hundreds of jobs regionally and nationally.
“It is estimated that the projects and their combined capital expenditure of up to $860 million will make a significant contribution to New Zealand’s GDP over a 10 year period. A significant proportion of that economic wealth and job creation will occur in the Taranaki region.” Mr Young says.
The studies also indicate that the combined projects will result in an increase in Government revenue of up to $1.2 billion over a 10 year period.
Mr Young says “Todd has a strong commitment to the province of Taranaki. We have operated there for more than 50 years and are a significant employer in the region. Todd will continue to work closely with our neighbours and the community during the gas appraisal and development programme.”
Todd is in the process of discussing the project with landowners, hapu, local government bodies and other community groups.