New Zealand Gazette – 2004 – No. 157

Page 3893

✨ Gas Entitlements

30 NOVEMBER 2004
NEW ZEALAND GAZETTE, No. 157
3893

Gas Entitlements

$Thousands	2004	2003
Balance expected to be realised:
Within one year	33,403	26,523
Later than one year	27,828	62,019
Advance Paid and Prepaid Gas Entitlements	61,231	88,542

NGC's entitlements to gas are:

a) Maui Gas

On 1 June 2004, NGC entered into variations to its Maui gas contracts which set the total amount of gas to be delivered under the contracts at the quantity determined by the independent expert on 7 February 2003. Under the variations the redetermined amount of gas would be delivered and there would be no further redeterminations. Further, if the Maui Mining Companies do not deliver this quantity they must supply 'make up' gas for any shortfall from another supply or pay liquidated damages for any undelivered gas. At 30 June 2004, NGC has 46.5 PJ of remaining Maui gas entitlements. As part of these variations to the Maui gas contracts NGC is guaranteed delivery of 42.2 PJ of its remaining Maui gas from its original Advance Paid and Prepaid gas entitlements. The Advance Paid and Prepaid gas entitlements require no further payment to the Crown when delivery is taken except for payment of the energy resource levy. The remaining 4.3 PJ can be uplifted by NGC at the previous contract prices. As part of the variations executed on 1 June 2004, NGC also has a right of first refusal at market price along with Contact Energy over any additional gas found beyond the redetermined amount after first reserving 40 PJs for Methanex NZ.

b) Kapuni Gas

NGC currently has entitlement to 50% of the recoverable gas reserves of the Kapuni field as they were determined to be at 1 April 1997. As at 30 June 2004 this is estimated to be approximately 130 PJ, of which, 83 PJ is at current Kapuni gas contract prices while the balance is expected to be at market prices prevailing when the gas is delivered.

NGC has reached an agreement with Shell Petroleum (Mining) Company Ltd (Shell) to purchase Shell's share of Kapuni gas, after Shell has met its pre existing contract commitments, for the period from 1 January 2005 to 31 December 2013. Deliveries of this Kapuni gas will be dependent on the daily production from the field, but NGC expects that some 45 PJ of gas will be delivered under this contract. The maximum total quantity of gas to be delivered under the contract is 70 PJ less the amounts credited to this contract from its Pohokura Gas Contracts discussed below.

Next Page →