✨ Gas Contracts and Agreements
3894
NEW ZEALAND GAZETTE, No. 157
30 NOVEMBER 2004
c) Pohokura Gas
NGC has agreed with Shell to purchase a portion of Shell's entitlements to gas from Pohokura from 1 July 2006, once the Pohokura field is commissioned, until 30 September 2007. The rates of gas able to be purchased under this contract vary over the term of the contract and NGC may purchase a total amount of up to 35 PJ of gas under this contract. The first 10 PJ of gas purchased under this contract will be credited to NGC's entitlement to 70PJ of gas as described above under Kapuni Gas.
NGC has also agreed with Shell to purchase a further portion of Shell's entitlements to gas from Pohokura from 1 January 2007 until 30 June 2010. Delivery of such gas is dependent on Shell's share of Pohokura's daily production, but NGC will have up to 30 TJ/day available. NGC may purchase a total amount of up to 38 PJ of gas under this contract. 50% of this gas will be credited to NGC's entitlement to 70PJ of Kapuni gas from Shell as described above.
d) Kahili Gas
NGC has agreed with the Kahili Joint Venture (Kahili JV) to purchase all the wet gas to be produced from the Kahili field, expected to be approximately 5 PJ. The Kahili JV comprises Austral Pacific Energy (NZ) Limited ("Austral"), International Resource Management Corporation ("IRM") and Tap (New Zealand) Pty Limited ("Tap"). NGC is currently constructing the production facility and pipeline to the gas from Kahili to its existing infrastructure and production is expected to commence by mid-August.
NGC has also made a prepayment of $2 million to Austral, which will be utilised for purchases of Austral's share of gas from Kahili. NGC has also made a prepayment of $2.5 million to IRM which will be utilised for purchases of IRM's share of gas from Kahili, and for purchase of IRM's share of any gas produced from the Cheal discovery in the future.
e) Gas Swaps and/or Other Purchases
NGC entered into an agreement with Methanex New Zealand ('Methanex') to swap gas, whereby NGC delivered 4PJ of gas (sourced from Maui and Kapuni) to Methanex from March to May 2004. In return, Methanex is to deliver the 4 PJ of gas back to NGC by 31 March 2005. As at 30 June 2004 NGC had received 1.22 PJ of gas back from Methanex, leaving an outstanding balance of 2.78 PJ. In addition to the swap, NGC will purchase a further 2 PJ of gas from Methanex by 31 March 2005, and Methanex can sell up to a further 8 PJ gas to NGC, at Methanex's election.
NGC has agreed to purchase 2.5 PJ of gas from Contact Energy Ltd (Contact) to be delivered to NGC by 31 March 2005. In addition to this purchase, NGC has agreed with Contact to swap gas, whereby Contact will deliver up to 2.5 PJ of gas (sourced from Maui) to NGC from 1 October 2004 to 31 March 2005. In return, NGC will return the same amount of gas back to Contact in the period from 1 July 2006 to 30 September 2007.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 157
Gazette.govt.nz —
NZ Gazette 2004, No 157
✨ LLM interpretation of page content
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Certification of NGC Gas Transmission Performance Measures
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🏭 Trade, Customs & Industry26 November 2004
Gas Entitlements, Maui Gas, Kapuni Gas, Advance Paid and Prepaid Gas Entitlements, Gas Contracts, Gas Delivery, Liquidated Damages, Energy Resource Levy, Market Price