New Zealand Energy Corporation (NZEC) has announced a new gas supply discovery within the existing Tariki field, located in Taranaki. While the find is promising, the company indicated that further testing is required to fully assess the extent of the gas supplies.
“The Tariki-5A gas development well has confirmed there is significant additional producible gas remaining in the Tariki sands higher in structure than was previously accessed,” NZEC chief executive Mike Adams said.
In a statement to the Toronto Stock Exchange, NZEC announced plans to establish processing facilities.
“Management of New Zealand Energy expects the reservoir to be able to deliver at least 10 terajoules per day.”
Production at those levels is projected to contribute approximately 3% to New Zealand’s current annual gas output.
“This is sufficient to exceed the requirements of the gas sales agreement between the Tariki joint venture and Genesis Energy.”
Genesis Energy has secured legal authority to develop up to 10 petajoules of gas storage in collaboration with the Tariki joint venture. This initiative aims to enable the storage of gas for use during the winter months, addressing seasonal energy demands.
During a recent winter power scare, Genesis Energy had to purchase gas from Methanex due to local supply shortages. This short-term agreement, which concluded in October, was necessary as the company resorted to burning more coal at its Huntly power station to meet energy needs.