NEW ZEALAND

No sign of Pohokura gas tenders

Commentators are starting to wonder when on earth the first Pohokura gas will be put out to tende...

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Departing Shell New Zealand chairman Lloyd Taylor last month told EnergyReview.Net that he hoped requests for proposals for the first tranche of Pohokura gas could be out before the end of the year, with gas marketing virtually completed before the final financial investment decision of mid-2004.

However, it is now known Taylor will leave New Zealand a disappointed energy executive, with his aspirations unfulfilled.

Commentators say they cannot understand why the Pohokura partners - Shell NZ, Todd Energy and OMV New Zealand - have not made more progress with gas marketing and committed themselves to some sort of schedule, in light of the go-ahead given three months ago by the Commerce Commission.

The commission, in early September, conditionally approved the joint selling and marketing of gas from the possible 1tcf field. Although the partners were initially disappointed they later said they were committed to fulfilling the commission's conditions and getting the field developed by mid-2006.

Now commentators are wondering about the apparent delays, given the partners told the commission that joint marketing would accelerate the development of the possible billion-dollar project.

OMV NZ commercial and legal director David Salisbury told EnergyReview.Net that "it was not appropriate to comment" about the apparent hold-ups, while Todd Energy chief executive Richard Tweedie said: "I have no comment to make at all, thanks very much".

Commerce Commission acting chair Paula Rebstock has also declined to comment on the situation.

While the government has said it sees a possible gas shortage from 2008-10, NGC's wholesale energy manager Jim Seymour believes demand for gas could start outstripping supply as early as 2005 if Methanex manages to keep its Taranaki methanol plants operating at only partial capacity.

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