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Maui Gas Field: Nov 2002 Gas Supply Constraint


27 August 2002

Maui Gas Field: November 2002 Gas Supply Constraint

Maui Development Limited (MDL) today advised that a program of inspection and maintenance on the Maui gas field infrastructure will be undertaken in November 2002. This program will require phased, partial shutdown of facilities throughout that month. As a result, gas deliverability will be less than the maximum provided for under normal field operations.

The Chairman of MDL, Dr. Lloyd Taylor said that, at this stage, it is estimated that 75-90% of maximum deliverability will be available throughout most of the month.

"However, this prognosis is subject to satisfactory progress in well work-over activity, and reservoir performance in the next two months. Based on current planning, the most critical period of the program willbe 16-22 November, when the Maui B production platform will be isolated due to the requirement to replace the emergency shutdown valve in the pipeline connecting to Maui A and to the shore. During this period, available gas deliverability might be further constrained. However, MDL is working to mitigate this risk.

"MDL is working closely with the Crown and major gas users to co-ordinate maintenance activity so that the effects of reduced gas supply will be minimised. We have timed the program of inspection and maintenance to a period when gas demand has dropped below winter peaks. Residential, and most industrial and commercial gas users will not be impacted by the constrained November deliverability, as supply should be more than sufficient for these customers.

"However, the electricity sector may be required to co-ordinate its generating capacity, to minimise the impact of reduced gas availability in thermal power generation. With Maui well into the third and final decade of its productive life, the impacts of field depletion and increased facilities maintenance, place a premium on energy industry co-operation, to ensure that the inherent energy supply chain risks are identified and managed in advance," Dr Taylor said.

In late October, MDL will provide a further update of plans and the status of November gas availability from the Maui field.

ENDS

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