Methanex (MEOH) said late Monday it will begin the process of indefinitely idling its Titan methanol plant in Trinidad and Tobago as it was unable to reach an agreement on a new natural gas contract.

Titan's existing natural gas contract expires in Q3, the company said. Methanex will undertake a preservation process at the Titan plant to provide optionality for a future restart when conditions improve, it said.

The Atlas methanol plant, a joint venture with Methanex holding a 63.1% economic interest, remains indefinitely idled in a preserved state, the company added.

Methanex said it does not expect to incur material costs from this decision and any updates to production or financial guidance will be provided with its regular Q2 results scheduled for July 28.