OPERATIONS

Pohokura delays costly: STOS

Operator Shell Todd Oil Services says New Zealand will suffer serious economic consequences if development of the Pohokura gas-condensate field off north Taranaki is significantly delayed.

STOS major projects manager Phil Moore has told a resource consents hearing in New Plymouth this week that the New Zealand economy will experience abrupt shortages of reticulated gas and electricity if Pohokura is not developed in time to provide cover for the rapidly faltering Maui field, this country's largest single energy resource. Last year Maui contributed 191 PJ to New Zealand's total gas production of 242 PJ.

Pohokura was the only significant undeveloped gas field in New Zealand, and so was key to meeting the country's energy requirements from 2005-2015.

Moore echoed what industry leaders, such as Shell New Zealand chairman Lloyd Taylor and Todd Energy boss Richard Taylor, have told EnergyReview.Net in recent months.

Taylor last month said Maui production could never again be boosted to an average 115% of normal rates to help counter low hydroelectricity production, as happened during last year's cold, dry winter. So there would be generation shortfalls and associated "brown outs" in some cities if the 2001 winter was repeated.

If Pohokura was delayed Moore predicted greater use of "dirtier" energy supplies, particularly coal and imported oil, to substitute for gas; more energy developments with greater environmental and land-use impact, such as hydro-electric schemes and wind farms; higher and more volatile energy prices; and a lack of confidence by industry and commerce, translating into reduced investment and a slowing of the economy.

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