Contact Energy Spuds New Well At Ahuroa Facility In New Zealand

Published: 04-Nov-2009

Contact Energy Limited (Contact Energy) said that a new gas injection well was spudded on November 3, 2009 at its Ahuroa underground natural gas storage facility near Stratford. The new well will be the first of an additional three wells which, when completed, will enable sustained gas injection and extraction into and from the depleted gas field.

The conversion of the depleted Ahuroa gas field into the country's first underground natural gas storage facility is being undertaken by Contact Energy with drilling, design and operations managed by Origin Energy Limited.

Contact Energy Managing Director, David Baldwin said the start of drilling marked the next phase of the $250 million Ahuroa development. Since a new compressor was installed and commissioned on the site in early October 2009, Contact Energy has been injecting gas into the field at the rate of around 40 terajoules per day.

When operational, the Ahuroa gas storage facility will enable Contact Energy to take natural gas during periods when the market does not require it and store it underground for use during peak gas and electricity demand periods.

The project will restore valuable gas supply flexibility for Contact Energy, enabling the company to shut down its gas-fired power stations when they are not required without being penalised by rigid take or pay gas supply contracts.

The Ahuroa gas storage facility will also provide flexible gas supplies for the company's $250 million, 200 megawatt gas-fired peaking power station which is under construction at Stratford and which is expected to be commissioned mid-2010.

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