Energy Companies Team Up To Explore LNG Potential

Genesis - Contact
28 January 2004

FOR IMMEDIATE RELEASE

Leading NZ Energy Companies Team Up To Explore Lng Potential

Planning to ensure that national electricity demand continues to be reliably met took an important step forward today with the announcement of advisers to lead studies into the logistical and market implications of importing Liquefied Natural Gas (LNG) to New Zealand.

Contact Energy Ltd and Genesis Power Limited announced the appointment of Kellogg Brown & Root Pty Ltd (KBR) and Poten & Partners to lead studies into the logistical and market implications of importing Liquefied Natural Gas (LNG) to New Zealand.

KBR has been appointed as the primary consultant to undertake an engineering feasibility study in collaboration with New Zealand-based engineering consultants Maunsell (formerly Meritec) and environmental consultants Boffa Miskell, Contact chief executive Steve Barrett and Genesis chief executive Murray Jackson said.

Scheduled for completion by mid-year, the study will seek to identify and cost alternative sites for an LNG receiving facility in New Zealand, with particular attention to environmental and consenting issues. In October last year, Contact and Genesis, New Zealand's two largest gas users, formed an alliance to explore options to ensure New Zealand's future generation needs are met in the most cost-effective and responsible way possible.

“This study is an important step in identifying New Zealand’s options in the event that no large domestic gas fields are discovered and that a gap between total energy demand and available supply occurs from around 2008-2010, as the Maui gasfield runs out,” Mr Barrett and Mr Jackson said.

Mr Jackson and Mr Barrett said the two companies have a common interest in ensuring that the country’s future energy needs are met in the most cost-effective way and the appointments are an important step in ascertaining the best way forward.

“KBR’s experience in delivering LNG receiving terminals across a broad spectrum of project sizes and concepts allows Contact and Genesis to determine the feasibility and cost of an LNG terminal in New Zealand.”

Although the study does not commit either Contact or Genesis to importing LNG, it will enable decisions on LNG to be made in a balanced and informed manner.

Poten & Partners’ brief as LNG market advisor will be to advise on how imported LNG can be integrated with existing and future indigenous gas supply.

“Poten & Partners will look specifically at the optimum capacity of an LNG receiving terminal and associated storage to ensure a reliable and secure gas supply,” Mr Jackson and Mr Barrett said.

“They will also advise on the required procurement and shipping plans that support the volume and timing requirements necessary to ensure supply security.

“This study is all about being able to make an informed decision when we have to. To that end we are also, independently, looking at other options to meet the 2008-2010 energy ‘gap’,” said Mr Barrett and Mr Jackson.

Link to October 2002 announcement: http://www.mycontact.co.nz/view?page=/forinvestment/pressreleases&opt=20031510a

FACT SHEET

Kellogg Brown Root

Kellogg Brown & Root (KBR) is a global company specialising in engineering, procurement and construction management services. It supports a network of offices extending across more than 100 countries and has approximately 54,000 staff. It is the engineering and construction subsidiary of the global energy services company, Halliburton: the world’s largest provider of products and services to the petroleum and energy industry.

KBR's global Infrastructure division, which will lead the engineering infrastructure study for Project Aria, is headquartered in Adelaide. The division has some 2,500 staff based in 44 offices and operates in three regions—the Americas, Europe/Africa and Asia Pacific. LNG technology will be provided by KBR’s Onshore division based in Houston. New Zealand expertise will be provided by subconsultants Maunsell (NZ) and Boffa Miskell Limited in aspects of the study including pipeline routing and environmental planning.

Maunsell

Maunsell Ltd (formerly Meritec) is one of New Zealand’s largest constancy firms and has operated in New Zealand since founded by civil engineer Ralph Worley in 1918. Today Maunsell is part of AECOM – the world’s leading pure design company (Engineering News Record, June 2003), with annual revenues of USD 1.8 billion and a global network of more than 17,000 staff worldwide. Operating in New Zealand from offices in Auckland, Hamilton, Wellington and Christchurch, Maunsell provides world-class planning, design, implementation and management solutions to the power, transport, facilities and environment services.

Boffa Miskell

Boffa Miskell is an environmental, planning and design consultancy with expertise in resource management, ecology, urban design, development planning and landscape architecture. The practice has been serving private and public sector clients for over 30years. Current professional staff exceeds 60, with offices in Auckland, Tauranga, Wellington and Christchurch. Many commissions involve working in the coastal environment, and this multidisciplinary approach will be essential for this project.

Poten & Partners

Poten & Partners is an independent company with over sixty years of experience in providing commercial and consulting services to the energy and ocean transportation industries. As a leader in consulting services to the LNG, Gas, and Power industries, it assists its clients to meet the challenges and opportunities of LNG/Gas commerce through its expertise in all aspects of the supply chain. With its headquarters in New York and branch offices in London, Singapore and Houston, Poten’s clients include oil and gas companies in the private and public sectors, power generation and industrial companies, traders and trading companies, ship owners and shipping companies, shipyards, storage terminals and pipeline operators, government agencies, and banking and financing institutions.

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