In the frame: New Zealand is investigating floating regasification options
Kiwis defer LNG import plan
New Zealand gas and power companies Contact Energy and Genesis Energy are putting plans to build the country’s maiden liquefied natural gas import terminal at New Plymouth on hold and instead are focusing on an alternative offshore LNG regasification facility.
An improvement in the local supply of gas for the next decade meant the decision on whether to apply for permission to build a gas storage and conversion facility, originally expected to cost around $400 million, was pushed back a number of years by the pair's 50/50 joint venture named Gasbridge.
“We decided there is no pressure to push forward and lodge an application, instead we’re going to sit on it and keep a watching brief on domestic gas supplies as well as keeping an eye on offshore regasification developments overseas,” Genesis public affairs manager Richard Gordon told Upstreamonline today.
He said the gas supply situation had improved since Gasbridge first started investigating the economics for an LNG import terminal at Port Taranaki.
When Gasbridge began in 2003, the possible date for requiring imported gas was 2012, but over recent years developments in oil and gas exploration has seen several domestic gas sources bought to market, namely Pohokura, Turangi, further Maui gas and in the second half of this year, the Kupe gas project.
Gordon said that Gasbridge currently sees a gas shortage opening up around 2018.
He added that the joint venture has been monitoring LNG options worldwide, with particular focus on offshore floating regasification options, which look less expensive and shorter in terms of building time.
The Port Taranaki project could have taken four years to complete, while an offshore project would take around 18 months and cost half the price.
The prospect of an offshore LNG unloading facility looks promising, said Gordon.