Comments On Draft Maui Gas Redetermination Report

Contact Energy Comments On Draft Maui Gas Redetermination Report

Contact Energy Ltd confirmed today that it had received a copy of the draft report from the Independent Expert on the redetermination of entitlements to remaining gas in the Maui gas field.

“While it must be stressed that this is still a draft at this stage, the numbers in the report are broadly consistent with those compiled by our own expert advisers,” Contact’s chief executive, Mr Steve Barrett, said.

“The final report from Independent Expert will provide an estimate of expected remaining Maui economic recoverable gas reserves. This will in turn lead to an adjustment to Contact’s entitlement under its supply contract with the Crown.

“Based on present information, it appears that volume of gas for which Contact would lose a contractual purchase entitlement will be broadly offset by reductions in our on-sale obligations under downstream supply contracts.

“However, it should be stressed that it is too early to predict with certainty the impact of the redetermination process on Contact. The outcome will depend on the Independent Expert’s final determination, the volume of gas allocated to Contact, and the profile that will apply to future delivery of gas.

Mr Barrett stressed also that “the Maui redetermination process is not expected to significantly affect the availability of gas to residential and smaller commercial customers, as their total demand is relatively small compared to total current use”.

“A final report from the Independent Expert is expected early in the New Year” said Mr Barrett.

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