Genesis Energy spokesman Richard Gordon and Contact spokesman Pattrick Smellie have both declined to comment on the site recommendation contained in the companies’ recently completed feasibility study into the economics of importing LNG.
Earlier this year, the pendulum seemed to be swinging towards Marsden Point, the site of the country’s sole refinery south of Whangarei in Northland, when Genesis Energy chief executive Murray Jackson raised possible safety concerns regarding importing LNG through Port Taranaki at the same time as coking coal was being stockpiled at the port.
But Genesis and Contact’s qualitative risk assessment has indicated that any LNG-coal concerns can be satisfactorily resolved. Port Taranaki is back as the frontrunner, being New Zealand’s sole integrated energy port, with a wealth of energy and environmental experience, existing infrastructure and a better safety record than its Northland counterpart.
The Pike River Coal Consortium, which includes New Zealand Oil & Gas, intends shipping up to 1.3 million tonnes per year of Pike River coking coal from the West Coast to Port Taranaki for storage and export from mid-2007.
“Essentially, we are getting pretty close to making a public announcement regarding the preferred LNG site, be that Port Taranaki or Marsden Point, by early to mid July,” Gordon told ERN this morning.
Commercial negotiations with potentially affected landowners, and or port companies, would have to be completed before any public announcement would be made.
Gordon said Genesis and Contact had formed a joint venture limited liability company and signed a memorandum of understanding on the potential $NZ500 million LNG project.
But they still intend to hold off making a decision to import the likely 50-60 petajoules per annum of LNG until 2008-09, with any actual importation starting from 2010-2013.
Port Taranaki business development manager Jon Hacon declined to comment today, but the port has already prepared an ambitious $NZ100 million expansion plan aimed at winning the LNG trade.
That plan involves the port almost doubling the length of its main breakwater to provide storage for up to 300,000 cubic metres of LNG, and providing berths for tankers carrying up to 135,000 cubic metres of LNG that would otherwise be too large to enter the harbour.
Contact and Genesis have previously said they believe LNG can be imported into New Zealand at an estimated price of $NZ6.50-7.50 per gigajoule. Most LNG would be used in the companies’ gas-fired power stations in Taranaki, Waikato and Auckland.
