The Pohokura partners - Shell New Zealand, OMV Petroleum and Todd Energy - have until the end of June to make their final investment decision (FID) regarding the possible NZ$1 billion development of the Pohokura gas-condensate field off north Taranaki.
In order to meet that tight timetable - as outlined to the Commerce Commission last year - the partners will have had to evaluate the expressions of interest (EOI) and requests for proposals (RFP) received well before the end of June.
“While each party may well have different ways of marketing their gas, everybody, sellers and users, will be scurrying around frantically in the next eight weeks,” said one commentator.
Simon King confirmed to EnergyReview.Net today that letters went out on Tuesday to those parties who had previously expressed interest in Pohokura gas. “We are looking for a 30 day period for expressions of interest for this, the first tranche of gas Shell will be selling, and there will be at least two tranches offered.”
OMV has also said it is actively marketing its share of Pohokura gas. Todd chief executive Richard Tweedie has declined to comment about his company’s plans, apart from saying that Todd’s downstream commitments, including power generation and retail gas sales, means it has different priorities from Shell and OMV.
Shell and OMV stunned the kiwi energy industry on Monday afternoon by saying they were going to separately market and sell their shares (48% and 26%) of Pohokura gas.
This is in stark contrast to what they told the Commission and the country - that joint marketing was the only way to avoid field development delays and substantial damage to the New Zealand economy.
There will be intense interest in and competition for the first Pohokura gas as Contact Energy needs gas for its Auckland, New Plymouth and Stratford power stations, as does Genesis for Huntly and Ballance Agrinutrients for its Kapuni ammonia urea plant.
Methanex may surprise everyone with its aggressive bidding in order to keep its Taranaki methanol plants operating at partial capacity.
As well, Pohokura operator Shell Todd Oil Services has confirmed that the Ocean Endeavour is scheduled to start another site survey of the Pohokura field next week, approximately 6.5-9km off Motunui.
In February the Fugro specialist vessel STM Markab conducted a geotechnical investigation 6km and 12km off the Motunui coast for two proposed Pohokura platforms, as well as drilling test holes along the proposed pipeline route to shore.
