The commissioning of the open-cycle turbine will boost the total capacity of Southdown by 36%, from 125MW to 170MW, and is another sign of New Zealand’s improving gas supply scene.

“This was another opportunity for Mighty River to secure more generating capacity quite quickly and something that will give Mighty River more flexibility with regard to its total electricity output,” new business development manager Steve Rawson told PetroleumNews.net in Auckland.

He said the new single-cycle turbine would be available from late December for use at times of peak electricity demand, as was also usually the case with the older combined-cycle station at Southdown.

Rawson said New Zealand’s improving gas supply meant new contracts could be signed for additional gas-fired generation plant – something that could not have been contemplated a few years ago.

Having the flexibility of gas-fired stations was important to MRP, he added.

During last winter, the driest year in 29 years in the South Island, MRP ramped up production at Southdown by 39% to 876GWh to cover hydroelectricity production shortfalls.

Rawson said MRP was continuing to move upstream, building a diversified portfolio of exploration prospects, largely centred around Taranaki, with several different operators.

“Mighty River is keen to tap into the potential of gas and it continues to be a longer term fuel option for us.”

During the last two years, MRP has forged four alliances with various explorers and is keen to play a significant role in New Zealand exploration and production.