Government welcomes jobs and growth in Taranaki

The Government is welcoming a likely $250 million a year increase to exports and the 500 additional construction jobs as part of the agreement announced this afternoon by the Todd Corporation and Methanex New Zealand to increase methanol production in Taranaki.

Methanex is entering into a 10 year contract with Todd that enable it to restart the second methanol manufacturing train at its Motunui facility, north of New Plymouth.

Economic Development Minister Steven Joyce says the announcement is a positive start for a year which is forecast to be challenging for the world economy.

“This is a good example of why oil and gas development with suitable environmental protections forms part of our plan to build a stronger economy,” says Mr Joyce.

“An assessment for Todd indicates this agreement may generate up to $1.2 billion in government revenue from royalties and taxes. That’s money we could put towards schools and hospitals to benefit all New Zealanders.”

Energy and Resources Minister Phil Heatley says the Todd Corporation and Methanex New Zealand are well-established operators who have a track record of operating in Taranaki for decades.

“We want to encourage these types of well-managed developments to unlock our resource potential to benefit New Zealand.

“This deal highlights the oil and gas industry’s significant contribution to our economy. Venture Taranaki estimates the industry employs over 7,700 people and contributes $2.5 billion to the country’s GDP,” says Mr Heatley.