Contact Energy gets nod for underground storage operation
Dec. 16 (BusinessDesk) – Contact Energy Ltd. and its Australian parent Origin Energy Ltd. have won the thumbs-up from government to store gas underground in Taranaki.
The power companies won the government over with their pitch to set up an underground gas storage facility in Stratford, the first such commercial investment in New Zealand.
“This project will allow Contact to better manage the use and supply of gas during peak period and low periods,” Energy Minister Gerry Brownlee said in a statement. “The storage facility and the peaking plant are important to security of electricity supply and better management of that supply in a dry year.”
Shares in Contact were unchanged at $6.20 in trading today, and have increased 0.3% this year.