Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Maui gas agreement improves energy security

Maui gas agreement improves energy security

The Crown has reached an agreement with other parties to the Maui gas contracts that will ensure gas reserves from the Maui field are maximised, Energy Minister Pete Hodgson said today.

"This is a welcome result that will improve New Zealand's energy security by reducing the uncertainties that have shrouded Maui gas supply in recent times," Mr Hodgson said.

Negotiations have been under way since early last year between Shell NZ, Todd Energy and OMV NZ (the Maui Mining Companies or MMCs), the Crown and downstream gas users Contact Energy, NGC and Methanex.

Last night the parties executed variations to the various Maui gas contracts.

Under the agreed arrangements, the gas reserves to be delivered at the Maui price are guaranteed by the MMCs at 367 petajoules (PJ), the amount identified by an independent expert as recoverable from the field at the Maui contract price.

The arrangements will enable the MMCs to develop further reserves in the Maui field, which will be sold at market price. Of the further reserves, 40 PJ of gas will be reserved for Methanex New Zealand. Contact Energy and NGC will have a right of first refusal over other additional gas.

"These arrangements are designed to provide the appropriate conditions for recovery of gas reserves from the Maui field to be maximised," Mr Hodgson said. "That will facilitate security of supply for both gas and electricity."

The agreement also provides certainty for the Crown, NGC and Methanex over their pre-paid gas entitlements.

"This agreement is the result of months of complex negotiation and I want to acknowledge the effort made by all parties to reach a commercial agreement that also serves energy security objectives," said Mr Hodgson.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news