In its submission to the Electricity Commission, which is considering the Transpower transmission upgrade, Todd outlines its blueprint for a series of smaller gas-fired stations situated in or near the greater Auckland region.

Todd also says existing gas reserves are sufficient to supply further power stations, even though Contact Energy’s submission to the commission argues it does not have a secure gas supply for existing generation assets beyond 2011, “much less for a new asset”.

Todd commercial operations manager Babu Bahirathan says the company has good knowledge of the gas market and the available reserves in three producing fields, and "existing reserves are sufficient to supply a 200MW plant.”

It also rejects the logic behind Transpower's plans for its Waikato-Auckland transmission upgrade - "Todd Energy believes that the proposed 400kV transmission line project proposed by Transpower is flawed."

It is proposing to build power stations in a modular way, adding extra capacity when needed, and has identified three potential sites for development.

Two sites in the heart of Auckland are large enough to accommodate multiple 200MW modules and close to existing gas pipelines. The third is south of Auckland but still close enough to power transmission and gas pipeline facilities.

Todd Energy says it can develop these projects on its own, but has had preliminary discussions with two potential partners - one of which has experience in developing and operating generation plant for transmission augmentation in Australia.

The Todd power stations could be operating 24-30 months after decisions are taken to proceed, according to the company.

"But initial indications are that some form of additional funding will be required," Todd said.

Meanwhile, Contact Energy has told the commission its plans for the 357MW Otahuhu C gas-fired station in south Auckland are on hold until there is more certainty in future gas supplies.

Otahuhu C has advantages over other projects as it is located in Auckland, next to the existing Otahuhu B station and already has resource consents.

"At present, though, the project lacks sufficient certainty in gas supply availability, pricing and transport for Contact to proceed with the project," the company said.

Contact says it is focusing on a providing greater long-term gas supply security for its existing generation portfolio and new projects such as Otahuhu C.

It is continuing to evaluate how to support exploration activity in the critical offshore Taranaki area.

Contact is moving to acquire seismic for permit PEP38493, which was likely to proceed in December, and is continuing to examine back-stop importation options such as LNG and CNG.

The other big New Zealand gas player, Genesis Energy, says the Transpower upgrade is critical and should proceed quickly.

Chief executive Murray Jackson says Genesis Energy’s commitment to building the 385MW Huntly gas-fired station known as e3p is based on Transpower’s understanding that a transmission upgrade would be required by 2010.

Genesis is investigating a range of energy market-based options across its entire business portfolio, including the recently reported combined-cycle gas plant in the Rodney district north of Auckland which Genesis hopes to build and commission as soon as possible.

“I wish to reiterate the criticality of the transmission upgrade and suggest that it be proceeded with in all possible haste,” Jackson told the commission.

Electricity Commissioner Roy Hemmingway is due to decide on the Transpower transmission upgrade application sometime next year.