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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, December 11, 2025, Vol. 26, No. 247
Headlines
A R G E N T I N A
ARGENTINA: IMF Sees Meeting Year-End Reserves Target Challenging
ARGENTINA: To Sell Local Law Bond in Dollars Amid Milei Momentum
B R A Z I L
B3 S.A: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable
BANCO DE BRASILIA: Moody's Withdraws 'B3' Deposit Ratings
GOL LINHAS: Ruling Set to Roil Post-Purdue Release Landscape
C A Y M A N I S L A N D S
CANTERBURY GROUP: Chapter 15 Case Summary
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Hits 10.2 Million in Tourist Arrivals
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Methanex Operations Hinges on Gas Supply
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A R G E N T I N A
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ARGENTINA: IMF Sees Meeting Year-End Reserves Target Challenging
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Jorgelina do Rosario & Manuela Tobias at Bloomberg News report that
the International Monetary Fund urged Javier Milei's government to
build up its foreign reserves as it acknowledged Argentina meeting
its end-year accumulation target will be "challenging."
"At this stage, meeting the end year reserve target will be
challenging," IMF Spokesperson Julie Kozack said at a press
briefing in Washington, according to Bloomberg News. "Nonetheless,
it remains essential for the authorities to make a concerted effort
in the period ahead to rebuild international reserves," Bloomberg
News relays.
The IMF's warning adds fuel to a debate between Milei's team and
some investors over whether the government needs to overhaul its
currency policy, which has been an Achilles' heel in Argentina's
past programs with the Fund, Bloomberg News discloses.
"We continue to advocate that the authorities should use the window
of opportunity to implement a consistent and robust monetary and FX
framework to help support the accumulation of reserves," Kozack
added.
She declined to speculate on whether Argentina would need to
request a waiver, or pardon, for failing to meet the key metric,
Bloomberg News says.
In its last review, the IMF had already relaxed its dollar reserves
target, Bloomberg News relays. Argentina was asked to raise net
hard-currency reserves to negative US$2.6 billion by the end of
this year to unlock the next tranche of IMF funds, about US$5
billion lower than the earlier target, Bloomberg News notes.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
ARGENTINA: To Sell Local Law Bond in Dollars Amid Milei Momentum
----------------------------------------------------------------
Buenos Aires Times reports that Argentina announced it will sell a
local law bond in dollars, seizing on positive momentum after
President Javier Milei's resounding win in October's congressional
midterms.
The so-called Bonar bond is due in November 2029, the Economy
Ministry said on X, according to Buenos Aires Times. Part of the
money will be used to cover upcoming maturities on sovereign debt,
Economy Minister Luis Caputo said -- Argentina has about US$4.5
billion in bond payments due in January, and a similar amount for
July, the report notes.
"A large maturity is coming, and with this bond I'm covering a part
of it," Caputo said in a television interview with local station
A24, the report relays. "The idea is to pay the January maturities
without reserves falling," he added.
Argentina markets have mounted a comeback as Milei's party won more
congressional seats in a late October vote than pundits expected,
the report discloses. Yields are now down to close to 10%, or
about six percentage points above benchmark US Treasuries, the
report says. That puts them near the levels that Caputo has
signaled to investors he'd be willing to sell bonds at, according
to people familiar with the matter, the report notes.
The report relays Caputo said the government is "very confident"
country risk will drop in coming weeks and that "we are the closest
we've ever been to having access to markets." He added that the
country has received offers from banks worth between US$6 billion
and US$7 billion and is evaluating how much to borrow to make sure
its reserves don't drop due to the January debt payments, the
report notes.
The last time Argentina accessed global markets was in 2020, after
it last restructured its debts following a default, the report
says. In May, it issued a five-year bond denominated in pesos
aimed at international investors who are allowed to purchase it in
US dollars, the report notes.
The coupon on the Bonar bond was set at 6.5 percent, with payments
due every six months, the report says. The government will take
bids, and announce results, the report discloses.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
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B R A Z I L
===========
B3 S.A: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed B3 S.A. Brasil, Bolsa, Balcao's (B3)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB+'. Fitch has also affirmed B3's Short-Term IDRs at 'B' and
its National Long- and Short-Term Ratings at 'AAA(bra)'/'F1+(bra)',
respectively. The Rating Outlook for the Long-Term IDRs and
Long-Term National Rating is Stable.
Key Rating Drivers
Ratings Based on SCP: B3's IDRs are based on its standalone credit
profile (SCP) which is below its implied SCP, reflecting the higher
influence of the Sector Risk Operating Environment (SROE) of 'bb'.
The assigned SCP is one notch above the SROE and one notch above
Brazil's sovereign rating (BB/Stable), reflecting the company's
robust business profile. Fitch does not expect the differential to
widen in the foreseeable future.
Dominant Franchise; Increasing Diversification: B3 has a dominant
domestic franchise in trading and clearing services across multiple
asset classes in Brazil. The group benefits from complementary
business units which generate a diversified and stable earnings
base. B3´s total net operating income (TOI) was USD1.3 billion as
of 9M25 and USD1.6 billion on average during 2021-2024, which is
commensurate with Fitch's 'bbb' category business profile benchmark
for FMIs.
Sound Operational Risk Management: Fitch considers B3's margin
framework and safeguard structures robust and well managed,
mitigating credit and counterparty risks arising from its central
counterparty clearing (CCPs) activities. B3 reports no historical
CCP defaults. Notably, 84% of CCP margin collateral is composed of
Brazilian government securities, which could pose risks in the
event of sovereign credit deterioration. Operational risks are
adequately managed, but legal risks from tax and civil proceedings
also limit Fitch's risk profile assessment. These claims total 2.9x
B3's equity as of September 2025, broadly unchanged year over year,
and are classified as "possible" in B3's financial statements.
Fitch assumes no losses over the rating horizon.
Robust Profitability: B3 continues to post profitability metrics
above regional peers. In the first 9M25, growth in fixed-income
depository and data/technology businesses offset weaker trading
revenue, despite sustained foreign investor inflows. As of
September 2025, EBITDA margin stood strong at 62.9%, broadly in
line with the four-year average of 65.5%. Fitch expects
profitability to remain strong, with growth tied to the evolution
of Brazil's capital markets, which may be affected by the 2026
presidential election and elevated domestic interest rates.
Leverage Remains Adequate: As of September 2025, B3 reported a
stable debt-to-adjusted-EBITDA ratio of 2.1x (2024: 2.0x), which
remains higher than regional peers but still commensurate with its
rating level.
Stable Funding and Liquidity: Fitch views B3's funding and
liquidity as strong, reflecting solid liability management and
diversified access to local and international markets. The
EBITDA/interest expenses ratio was 4.0x at September 2025 (four
year average 6.0x), consistent with the midrange of the 'bbb'
category for FMIs. B3 benefits from a long-term debt profile and
strong market access; less than 3% of its total debt matures in the
next 12 months. Cash liquidity is robust, with BRL12.8 billion in
liquid assets. Restricted cash, currently unused CCP liquidity and
credit facilities further support the liquidity profile.
National Scale Ratings: B3's national scale ratings measure the
entity's creditworthiness relative to other issuers in Brazil. The
long-term National Rating of 'AAA(bra)' reflects the company's
superior credit profile compared with other Brazilian entities.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs and Senior Debt
- B3's ratings could be downgraded following negative rating
actions on the Brazilian sovereign rating or a downgrade of Fitch's
assessment of the SROE factor score;
- The ratings could be negatively affected if counterparty risks at
B3's CCPs rises beyond the growth of accompanying margins and
guaranty funds, increasing the risk of compromising B3's liquidity
or equity position, or by prolonged, repetitive system outages that
cause reputational damage;
- Unfavorable decisions or expectations related to existing tax and
civil proceedings that weaken B3's financial profile could result
in a downgrade of one or more notches;
- A material, sustained deterioration in B3's financial
performance, significant reduction of profitability, gross leverage
above 4x or interest expense coverage below 4x, could also put
downward pressure on ratings.
National Ratings and Debenture
- The national ratings of B3 could change if Fitch's view of the
company's creditworthiness relative to other Brazilian entities
changes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs and Senior Debt
- B3's IDRs have limited upside potential as they are already one
notch above Brazil's sovereign ratings;
- A positive rating action on Brazil's sovereign rating.
National Ratings and Debenture
- The national scale ratings of B3 are at the highest level on the
national scale; therefore, they cannot be upgraded.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
B3's senior unsecured debt is rated in line with its IDRs and
National Rating because the default risk on the notes aligns with
the entity's default risk.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
B3´s senior debt ratings would move in line with the entity's IDRs
and National Scale Ratings.
ADJUSTMENTS
The Standalone Credit Profile has been assigned below the implied
Standalone Credit Profile due to the following adjustment reason:
Sovereign Rating (negative).
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
B3 S.A. Brasil,
Bolsa, Balcao LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Natl LT AAA(bra)Affirmed AAA(bra)
Natl ST F1+(bra)Affirmed F1+(bra)
senior
unsecured LT BB+ Affirmed BB+
senior
unsecured Natl LT AAA(bra)Affirmed AAA(bra)
BANCO DE BRASILIA: Moody's Withdraws 'B3' Deposit Ratings
---------------------------------------------------------
Moody's Ratings has withdrawn all ratings of BRB-Banco de Brasilia
S.A. (BRB), including the B3 and Not Prime long- and short-term
local- and foreign-currency deposit ratings, as well as the B2 and
Not Prime local- and foreign-currency counterparty risk ratings
(CRRs), in the long- and short-term, respectively. The bank's
baseline credit assessment (BCA) and adjusted BCA were also
withdrawn at b3, and counterparty risk assessments (CRAs) of B2(cr)
and Not Prime(cr), in the long- and short-term, respectively, were
also withdrawn. The long-term ratings and assessments withdrawn
were on review for downgrade. The outlook on the long-term deposit
ratings was changed to rating withdrawn from ratings under review.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
BRB is headquartered in Brasilia, Brazil, with assets of BRL74.5
billion and shareholders' equity of BRL4.0 billion as of June 2025.
GOL LINHAS: Ruling Set to Roil Post-Purdue Release Landscape
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Alex Wittenberg at law360.com, citing experts, reports that a
federal judge's decision that Brazilian airline Gol Linhas' Chapter
11 plan releases were nonconsensual could have sweeping effects on
how debtors secure valuable liability waivers in bankruptcy,
complicating the question of what counts as consent under the U.S.
Supreme Court's Purdue Pharma ruling.
About Gol Linhas
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and
cargo; and maintenance services for aircraft and components in
Brazil and internationally. The company offers Smiles, a frequent
flyer program to approximately 20.5 million members, allowing
clients to accumulate and redeem miles. It operates a fleet of 146
Boeing 737 aircraft with 674 daily flights. The company was
founded in 2000 and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank LLP as counsel, Seabury Securities LLC
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and Hughes Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring
Administration LLC is the Debtors' claims agent.
GOL Linhas exited Chapter 11 in June 2025 after securing $1.9
billion
in new financing and getting court approval for its restructuring
plan.
In August 2025, Moody's Ratings assigned a B3 corporate family
rating to Gol Linhas Aereas Inteligentes S.A. (Gol) in connection
with its post-bankruptcy exit financing. At the same time, Moody's
assigned a B3 rating to the $2.1 billion backed senior secured
first lien notes issued by Gol Finance (LuxCo) on June 6, 2025 and
due in 2030. The outlook for both entities is stable.
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C A Y M A N I S L A N D S
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CANTERBURY GROUP: Chapter 15 Case Summary
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Chapter 15 Debtor: Canterbury Group
c/o Chris Johnson Assoc. Shedden Rd
Grand Cayman
KY1-1104 Cayman Islands
Business Description: Canterbury Group Ltd. is a Cayman
Islands-registered exempted limited
company incorporated on October 4, 2016,
to operate as a holding company. It is
wholly owned and directed by Erin
Winczura. The Company is described as a
holding entity without identified
ongoing business operations.
Chapter 15 Petition Date: December 3, 2025
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 25-12705
Judge: Hon. Michael E. Wiles
Foreign Representatives: Karen Scott and Russell Homer
Shedden Road
PO Box 2499
Grand Cayman
KY1-1104 Cayman Islands
Foreign Proceeding: Grand Court of Cayman Islands, Fin.
Service Div., Case No. FSD 310 of 2024
Debtor's U.S. Counsel: John E. Jureller, Jr., Esq.
KLESTADT WINTERS JURELLER SOUTHARD &
STEVENS, LLP
200 West 41st Street 17th Floor
New York NY 10036
Tel: (212) 972-3000
Fax: (212) 972-2245
Email: jjureller@klestadt.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/IS7KB5Y/Canterbury_Group_and_Karen_Scott__nysbke-25-12705__0001.0.pdf?mcid=tGE4TAMA
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Hits 10.2 Million in Tourist Arrivals
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Dominican Today reports that Tourism Minister David Collado
reported that the Dominican Republic welcomed 10,284,251 visitors
as of November 30, 2025 -- 52% more than in 2019, when the country
received 6.7 million tourists.
This growth occurred despite losing around 600,000 annual visitors
from Russia and Ukraine due to the ongoing war, according to
Dominican Today. The sector also posted a 13% increase over 2023
and 3.1% over 2024, with hotels in the eastern region and much of
the country fully booked from December through April, the report
notes.
Tourism is on track to close the year with 11.7 million visitors
and more than US$12 billion in foreign exchange earnings, the
report relays.
From January to November, air arrivals reached 7,884,421, marking
growth of 3% over 2014 and 35% over 2019, while cruise arrivals
climbed to 2,399,833, also up 3%. Of these visitors, 6,585,380 were
foreigners (+2%) and 1,299,041 were Dominicans with international
passports (+8%), the report discloses.
The record-breaking performance generated employment for over
800,000 people across tourism, agriculture, and commerce,
contributing US$16.781 billion to GDP and RD$73.6 billion to the
government for essential services such as education, health, and
infrastructure, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
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T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO: Methanex Operations Hinges on Gas Supply
-----------------------------------------------------------
Joel Julien at Trinidad and Tobago Express reports that The
Methanex Corporation's future in Trinidad and Tobago hinges on
securing adequate gas supplies, with expansion plans closely linked
to potential cross-border development in Venezuela, its president
and chief executive officer Rich Sumner has said.
Sumner made the comment as Methanex recently hosted its Investor
Day.
He said that while Methanex is seeing stable or improving gas
supply conditions in regions such as Chile and Egypt, T&T continues
to face uncertainty, according to Trinidad and Tobago Express.
Sumner said that, similar to Methanex's assets in New Zealand, the
offshore gas fields in T&T are "all mature and at end of life," the
report relays. "Production has gone from a peak of 4.2 billion
cubic feet (bcf) a day in 2010 to around 2.5 bcf per day today.
That's roughly a 40% decline from peak production," he added.
"But what's different and more important is that the country itself
is highly dependent on oil and gas revenues. So unlike New
Zealand, their strong political will and motivation could enable
upstream activity in the region. Today, there are few local
offshore developments that are expected to come online in 2027 and
have the potential to slightly increase current production and
sustain that for another couple of years," Sumner said, the report
discloses.
Sumner said Methanex expects T&T's gas supply–demand balance to
remain relatively tight through 2027, the report relays.
"Ultimately, to sustain and grow production, grow gas supplies in
Trinidad hinges on the ability to develop cross-border supplies
with Venezuela where there is a very large gas resource base. But
such cross-border developments require the right geopolitical
conditions to enable," he added.
"Today, we're operating our Titan asset in Trinidad and producing
around 800,000 metric tonnes per year. And even though we've
developed good capability in Trinidad, continued operation will be
largely contingent on the gas look. And more importantly, our
ability to secure future gas supply contracts to profitably sustain
longer-term operations in the country," Sumner said, the report
discloses.
The report relays that Sumner said that because of the gas
shortages in T&T, all the energy players are taking a "haircut" on
their operations.
He said that, as it currently stands, T&T's gas demand comes from
methanol, ammonia and LNG producers, the report says.
"Pretty much across the board in terms of gas, 4 bcf a day of gas
demand and 2.5 bcf a day of production. So, across all end users
there, LNG, methanol and ammonia . . . everyone's taking a haircut
on operations there. There is the recent announcement of Nutrien
backing out of Trinidad. And what happens to gas? We do believe --
not certain -- that what's going on there is obviously not . . .
for us to speak to that situation. We do think, on a short-term
basis, some gas may have been rediverted into methanol," he added,
notes the report.
"But I think everyone is taking a haircut across the whole
downstream sector, and right now our focus on Trinidad is again
operating at cash positive. There are developments that Kevin
spoke to that could allow Trinidad, both within Trinidad, to
develop gas in the short term, but also, then, longer term it's
around geopolitics in Venezuela and the opportunity to unlock
there," Sumner said, the report relays.
In October 2023, Methanex signed a two-year natural gas agreement
with the National Gas Company of T&T (NGC) for its currently idled,
wholly-owned Titan methanol plant to restart operations in
September 2024, the report discloses.
"So, today, our focus will be on the Titan asset that we have.
We've got a gas contract coming up in September 2026. Our base case
scenario is that we get another two-year gas contract there on
similar terms, and we don't have a turnaround on Titan till the end
of that . . . term of the contract," Sumner said, the report
relays.
The Titan plant produced 203,000 tonnes in the third quarter of
2025, down from 216,000 tonnes in the second quarter, the report
notes.
For the year to date, Titan has produced 556,000 tonnes for the
nine months ended September 30, 2025, the report discloses.
In 2024, Titan produced 956,000 tonnes.
While Titan was restarted, Methanex idled its Atlas methanol plant
when its legacy 20-year natural gas agreement expired, the report
says.
"I am proud of our team's effort to reach an agreement with the NGC
that allows us to preserve this strategic location in our global
portfolio and maintain a world-class team. The two-year term of
the Titan contract offered by the NGC reflects the challenging
near-term gas supply and demand situation in the country. In the
medium to long term, the NGC continues to work with the upstream
sector on their plans to develop increased gas supply to the
country through various projects, although uncertainty remains,"
Sumner said then, the report relays.
Sumner said then that Methanex had been working with the NGC and
the T&T Government for an extended period to secure economic gas
supply for the Atlas and Titan plants, the report notes.
"Our decision to restart Titan and cease operations at Atlas was
based on economic considerations, including significantly lower
capital requirements at Titan compared to Atlas," he stated.
Sumner said the company's plant in Beaumont, Texas -- and the
gasoline it produces -- is essentially a replica of the Atlas
plant, the report relays.
"We have a lot of history operating those plants and learning from
that particular asset," Sumner said.
Sumner said right now, Methanex is "very focused" in both T&T and
New Zealand about ensuring that they are free cash flow positive,
the report discloses.
Asked whether Methanex would consider relocating its T&T plants to
another country, the company said it had studied the feasibility,
the report notes.
"Yeah. No, it's something that we look at. What I would say is it
sort of depends on the state of the plant; and then also, the
jurisdiction that you might be going to, because a lot of it has to
do with how much of the plant can you move to a different location,
and does it actually give you an advantage to do that? And a lot of
it has to do with the piping or the pressure that you can move.
So, we do look at it. We've got studies . . . on the shelf, and
there's opportunities that emerge. We'll look at that. But it's
not something that we're actively pursuing today," senior vice
president—Corporate Development Kevin Maloney said, the report
says.
Sumner said the main advantage to moving is about speed and less
about capital savings.
"And so, we don't see the market really demanding us to move with
speed, because the pricing signals aren't there today. So, it's
unlikely that we're exploring that. But like Kevin says, we're
always studying to see if that was an option, how and which asset
would make sense," he added.
Nutrien Shutdown to Continue Next Year?
In October, Nutrien completed a controlled shutdown of its T&T
nitrogen operations due to uncertainty with respect to port access
and a lack of reliable and economic gas supply, the report relays.
During an earnings call held on November 6, president and chief
executive officer of Nutrien Ken Seitz said the reduction in its
T&T volumes is expected to be partially offset by the continued
strong performance of its North American nitrogen operations, the
report notes.
"In Trinidad itself, we are looking at our various alternatives,
assessing options, because we do need line of sight to stable and
economic gas supply; and of course, access to port. So, we're
working, talking to the Trinidad Government about what those . . .
optimal operating conditions might be. And again, as I say,
assessing our path forward," he said, the report discloses.
Asked if the Nutrien nitrogen plant will remain shut down in T&T
next year, Seitz said he was not certain, the report relays.
"Yeah, no -- in Trinidad, we'll see. We're certainly not
prognosticating that we're gonna be shut down into 2026. We're
working through that at the moment, and, you know, looking for
those optimal operating conditions where, again, (we have) reliable
and affordable gas supply and access to port . . . So, those
discussions will be ongoing. Trinidad contributes less than 1% of
our free cash flow. And so, it is, from that perspective, in terms
of the overall contribution, it's de minimis," he added.
Seitz and Nutrien executives visited Prime Minister Kamla
Persad-Bissessar in T&T on November 22, the report notes.
"And even our own Trinidad operations, which are shut down this
year, I would say, you know, phosphate probably will continue. And
again, looking at the supply and demand balance, it will probably
continue to be tight. I know that . . . phosphate prices are
elevated compared to historical average levels. But at the same
time, it's a supply story. And while we might see some reduced
phosphate volumes going down here in the fall, given where
phosphate prices and therefore affordability is at, we might see
some of that. We expect that . . . heading into 2026, the market
will continue to be tight," Seitz added.
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