Methanol production in Trinidad and Tobago set a second consecutive low for the past two years in September, according to the most recent data from the country's Ministry of Energy and Energy Industries.
Production of methanol totaled 330,000 mt from the month, down 6% from 351,000 mt in August and the lowest figure through 2015 and 2016, data released this week showed. September's methanol output marked a 25% decline from 438,000 mt in September 2015.
The lower production totals come with gas utilization in methanol production declining even as gas output in the country recovered from August's lows.
The year-to-date methanol production total of 3,558,000 mt stands 12.5% below 4,069,000 mt in January-September 2015, the data showed.
The 480,000 mt/year TTMC1 plant in Port Lisas has not produced any methanol since April, with the 580,000 mt/year M4 unit showing no output in September. The 550,000 mt/year CMC plant in Port Lisas returned to more normal levels with 38,000 mt in September after producing 19,000 mt total over the previous three months. The 1,890,000 mt/year M5000 unit generated its lowest production of the year with 48,000 mt after reaching as much as 150,000 mt in January.
Methanol exports from Trinidad and Tobago totaled 334,000 mt, down 9% from 367,000 mt in August and 2.6% lower than the 343,000 mt in September 2015.
The country's methanol operations consumed 391 MMcf/d of gas, setting the lowest total through 2015 and 2016 for a third straight month. Gas utilization in methanol manufacturing declined 2% from 400 MMcf/d in August and 24% from 515 MMcf/d in September 2015.
Gas production increased month on month to 3,193 MMcf/d, exceeding only August as second lowest level through 2015 and 2016. Gas production marked a 16% increase from 2,758 MMcf/d in August but dropped 4% from 3,810 MMcf/d in September 2015. The year-to-date average of 3,338 MMcf/d marks a 14% decline from the average of 3,874 MMcf/d in January-September 2015.
Methanex, which has interests in two plants in the country, expressed some level of optimism moving forward about methanol production and the availability of feedstock natural gas in the country.
"We expect restrictions to be around 15% with some improvements in the next 24 months, but we're cautious," Methanex CEO John Floren said last week in a conference call to discuss third-quarter results.
The extent of natural gas restrictions and concerns about methanol production in Trinidad and Tobago had contributed to firmer global methanol pricing in recent weeks.
Methanex's production in Trinidad and Tobago includes full ownership of the 850,000 mt/year Titan plant and a 63.1% stake in the 1,700,000 mt/year Atlas facility. Those two facilities produced 66,000 mt and 133,000 mt in September, the highest outputs of the seven units in the country, the data showed.
S&P Global Platts assessed US spot methanol on Thursday at 82.50-83.00 cents/gal FOB USG for November and December.
