Operators of New Zealand's primary gas field, Maui Development Ltd, have said they will open the pipeline dedicated to carrying Maui gas to other users from October 1.
Gas pipeline company NGC Holdings, owned by the country's biggest electricity and gas distributor Vector Ltd, has been appointed to operate an
open access system in the 313km onshore pipeline.
The pipeline links Taranaki on the west coast of the North Island and Huntly, where state-owned generator Genesis Energy has a major power station.
It has been dedicated to moving gas from the offshore Taranaki Maui field under a contract with the government, but will now be available to move gas from the yet-to-be-developed Kupe, Pohokura and other fields, when they come on stream.
"For gas shippers, the new regime requires them to sign the Maui code, and imposes tighter disciplines in forecasting and booking pipeline capacity," NGC chief executive Bryan Crawford said in a statement.
The agreement allows the transfer of gas between the Maui pipeline and NGC's gas pipeline servicing the wider North Island.
The arrangement was needed to maintain the security of supply of gas as reserves in the Maui field, which used to supply up to 80 per cent of New Zealand's gas, wind down, Crawford said.
An NGC spokesman said the company would not release commercial details of the agreement.
Maui Development is majority owned by Shell NZ (83.75 per cent), along with privately owned Todd Energy (6.25 per cent), and a unit of Austrian firm, OMV (10 per cent).
The rapidly depleting offshore Maui field had its remaining reserves revised to 319 billion cubic feet (346 petajoules) of gas as of January 1, 30 per cent of New Zealand's known reserves.
New Zealand has an annual requirement of around 150 petajoules of gas.
- REUTERS
