Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Companies Team Up To Explore LNG Potential

Leading Nz Energy Companies Team Up To Explore Lng Potential

Contact Energy Ltd and Genesis Power Limited today announced the formation of an alliance to explore the development of a liquified natural gas (LNG) receiving facility in New Zealand.

Contact Chief Executive Steve Barrett and Genesis Chief Executive Murray Jackson said the joint action was a logical approach to solving a potential shortfall in New Zealand’s energy supplies towards the end of this decade.

“New Zealand faces the prospect of a primary energy ‘gap’ from around 2008-2010 due to the wind down of the Maui gas field, with only small new gas fields being developed, and continued demand growth,” said Mr Barrett and Mr Jackson.

“Offsetting these influences, we expect to see continued growth in renewable sources of energy such as wind and geothermal, and continued exploration for new gas fields. However, it is far from clear that these sources alone will be enough to fill the gap.

“To fill any remaining energy deficit, New Zealand faces two choices: coal or liquified natural gas. Each of these options poses major challenges in terms of large financial commitment and long lead times. Both are viable from a technical perspective, but we believe that LNG is likely to be the preferred option based on present policy settings,” said Mr Jackson and Mr Barrett.

“As the two largest gas customers in our own right, Genesis and Contact are the logical parties to be progressing an LNG development. Between us, we also account for 95 percent of the gas used in electricity generation and supplied to retail and industrial customers.”

Mr Jackson and Mr Barrett said the two companies have a common interest in ensuring that the country’s future generation needs are met in the most cost-effective and responsible way possible.

“That is why we are formalising an arrangement between our two companies to jointly examine LNG supply sources, and the feasibility of using LNG to run thermal power stations in New Zealand.
“Contact and Genesis will be conducting a full feasibility study of LNG as an alternative fuel source for New Zealand including alternative supplies, on-shore facilities and access to existing infrastructure.

“We expect to have formed a clear view by the end of the first quarter of next year,” said Mr Barrett and Mr Jackson.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news