PEPANZ Welcomes Todd/Methanex Investment

18 January 2012

Media Statement for Immediate Release

PEPANZ Welcomes Todd/Methanex Investment

Today’s significant business announcement by the Todd Corporation, regarding their 10 year gas supply agreement with Methanex New Zealand, highlights the importance of oil and gas development for New Zealanders and the benefits to our country.

PEPANZ CEO David Robinson said, “In any language, $860 million of cash injected into the local economy will make a real difference.” This is real money, creating genuine long term jobs, and generating export earnings on a significant scale.”

Todd Corporation and Methanex’s efforts to re-establish the mothballed methanol train, which takes an idle facility and brings it back into production, is the type of initiative New Zealand needs to maintain current standards of living, reduce government borrowing and pay off debt. “Good news like this doesn’t come every day” said Mr Robinson, “I commend the Todd Corporation and Methanex for their commitment to New Zealand. The decision to invest considerable funds such as these takes courage, particularly when a return on those funds is not guaranteed.”

As members of PEPANZ, Todd is committed to operating their facilities safely and to the highest ethical standards. “Todd has an excellent track record for their safety and environmental performance and I have no doubt this will continue with their expanded operations.” Mr Robinson added.

Oil and gas is the fourth largest export earner for New Zealand. Continuing development of oil and gas exploration and production in New Zealand will deliver further economic benefits to New Zealanders. This investment alone will increase both royalty and tax revenue to the people of New Zealand. The pending review of the Crown Minerals Act provides an opportunity to ensure that the industry in New Zealand is effectively governed to encourage investors, like Todd, to choose to invest their money in New Zealand rather than in other countries.

ENDS

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