Hon Gerry Brownlee
Minister of Energy and Resources
16 December 2010
Media Statement
Underground gas storage gets go-ahead
An Origin/Contact Energy consortium has been granted permission to proceed to fully commissioning the Ahuroa underground
gas storage facility near Stratford in Taranaki, Energy and Resources Minister Gerry Brownlee said today.
“A permit under the Crown Minerals Act has been granted that will allow the Ahuroa Gas Storage Project to be developed
into a fully-functioning underground gas storage facility for the purposes of storing and supplying gas for electricity
generation,” said Mr Brownlee.
“This is an exciting development, which illustrates the growing maturity of the New Zealand gas market.
“Not only will this be the first commercial underground gas storage operation in New Zealand, but this project will
allow Contact to better manage the use and supply of gas during peak period and low periods.
“The Ahuroa gas storage facility will also supply Contact’s $250 million, 200 megawatt gas-fired peaking power station
being constructed in Stratford.
“Both the storage facility and the peaking plant are important to security of electricity supply and better management
of that supply in a dry year.”
In June 2008 Origin Energy Resource New Zealand (TAWN) Limited, and its subsidiary Origin Energy Limited and Contact
Energy established the Ahuroa Gas Storage Project Agreement. Origin Energy Limited has a 51.4 per cent stake in Contact.
Since that time, the Origin/Contact consortium has been undertaking stage one operations under a licence to test for
functionality.
Permit 52278 has been granted for 40 years. Details of the permit are available under the petroleum section of the Crown
Minerals website at www.crownminerals.govt.nz.
ENDS