GAS

Kupe infrastructure approved by NZ local authorities

FIRST gas ashore from the US$400 million offshore Taranaki Kupe field is one step closer to reali...

Kupe infrastructure approved by NZ local authorities

Last month, PML 38146 operator Origin Energy applied for 18 land, water and air resource consents relating to all land-based and near-shore developments for the Kupe field, associated pipelines and the new onshore production station.

This week, the TRC approved all those resource consents, subject to over 200 general and special conditions – including one requirement to produce a detailed pipe-laying management plan to minimise the disturbance to the seabed that local Maori had feared would affect their customary coastal food gathering rights.

The TRC set the term of the resource consents at 35 years, despite the present petroleum mining permit expiring in 27 years, as Origin and its partners had said other nearby oil and gas prospects might be developed and linked into the planned central area production facilities.

In early April, the partners announced the construction of a new onshore production station, rather than tolling Kupe gas through existing onshore facilities, with the new facilities able to process at least 70 tetrajoules per day of gas.

Then later that month the partners announced an upgrade of recoverable reserves from the central part of field by 16.5% to the equivalent of 394 petajoules.

Front-end engineering and design studies associated with the onshore and offshore elements of the project are well advanced and final investment decision is expected in the last quarter of this year.

Construction of the new production station is expected to take about two years, with first gas, oil and LPG deliveries from late 2007.

The Kupe Joint Venture comprises Origin Energy Resources (operator and 50%), Genesis Energy (31%), NZOG (15%) and Mitsui E&P (4%).

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