Media reports quote CAE executive director George Hooper as saying the think-tank’s almost completed study shows imported LNG could be up to 20% more expensive than indigenous gas. Any premature decision to import LNG would discourage local gas exploration and coal development, according to Hooper.
The CAE study, which examined national and economic perspectives, showed a likely LNG scenario would result in decreased consumer spending and increased electricity costs over a business-as-usual case, said Hooper (a former Methanex employee).
Earlier this week Contact and Genesis announced the results of their LNG feasibility study, saying LNG would be viable - at a likely delivered cost of NZ$6.50-7.50 per gigajoule - and provide extra security of supply for electricity, for 20 years or longer from early next decade.
At those prices, thermal electricity produced from LNG would be competitively priced at 6.8-7.5 cents per kilowatt hour. Genesis chief executive Murray Jackson dismissed talk of NZ$9-10 per GJ gas, saying there was no foundation for those rumours.
However, Hooper said the CAE study showed imported LNG would cost more than NZ$8 per GJ.
The CAE study was funded by the exploration industry and electricity players to assess the state of thermal fuel supply after the expiry of cheap Maui gas.
