NZ Power Firm Secures Extra Gas Supply

New Zealand’s Contact Energy said in a release on February 10 it had signed an agreement to receive 37 petajoules (PJ) of gas between 2021 and 2025 from Austria’s OMV.

The Wellington-based firm, which uses gas to generate power, and sells gas on wholesale and retail markets, also reported it would receive at least 6.3 PJ of supplies from OMV’s offshore Maui field out of its 10-PJ entitlement in 2021. Furthermore, it announced entering into a contract with an undisclosed party for the supply of a further 3.6 PJ of gas in 2020.

“Today’s agreements secure our fuel position in line with firming requirements for the medium term,” Contact’s chief generation and development officer James Kilty said.

The company is working to build up its geothermal generation capacity at Tauhara. But in the meantime, Kilty said there was “ongoing need for gas generation to firm intermittent sources of renewable generation such as wind and hydro generation.”

“We need to ensure there are affordable and stable alternatives when weather-dependent generation options are unavailable,” he said.

OMV produces gas in New Zealand at both Maui and another offshore field called Pohokura. It also operates seven exploration permits in three of the country’s basins. The company recently sold the Maari oilfield off New Zealand to concentrate more on its gas activities.