Todd Energy to build $65m LPG Plant in Taranaki

MEDIA RELEASE
MONDAY 28 SEPTEMBER 2009

Todd Energy to build $65Million LPG Plant in Taranaki

Leading New Zealand energy producer, Todd Energy announced today it will be moving ahead with plans to build a Liquefied Petroleum Gas (LPG) Plant at its McKee Production Station site in Taranaki. The total cost of the project is approximately $65million dollars and will provide significant benefits to both the local Taranaki and New Zealand economy.

Richard Tweedie, Managing Director Todd Energy said the construction phase of the plant will create “in excess of 200,000 man hours of work, of which the majority will involve Taranaki people and businesses, over 12 months.”

Once commissioned, the LPG plant will enable Todd Energy to produce LPG sourced from its Mangahewa and Pohokura fields and deliver the product to customers via Todd Energy’s retail company, Nova Energy.

“People will be able to enjoy the benefits of LPG throughout the North and South Island,” said Mr Tweedie. “We are the only energy company providing New Zealand with a wellhead to customer service from our own totally indigenous LPG,” he said.

LPG is a natural by-product of gas extraction and the new plant will produce 27,000 tonnes of LPG per annum.

“The new plant will also help reduce New Zealand’s dependence on imported LPG which is good news for the country’s economy,” he added.

The plant will be located next to Todd Energy’s 100% owned and operated McKee Production Station. Mr Tweedie commented that the site is ideal because it is already set up for industrial activity and that the new LPG plant will “maximise the use” of existing infrastructure from the McKee Plant and have a “low impact” on the area.

“Todd Energy has over 50 years experience in the Taranaki energy industry and we consider Taranaki our home. We will certainly ensure all reasonable steps are taken to minimise the impact of the project,” Mr Tweedie said.

Positive discussions regarding the LPG plant have been held with the Taranaki Regional Council and New Plymouth District Council and all consents have been signed off for the project to proceed to the construction stage. Todd Energy is currently in final negotiations with a number of potential contractors.

“We hope to be able to confirm the project’s contractors in the next few weeks,” he said.

LPG is one of the most environmentally friendly fuels available and is a naturally cleaner-burning energy source than petrol and diesel, coal, wood and light fuel oil. LPG can be used for heating, cooking, hot water and in vehicles and is an easily transferable fuel via road, sea or rail.

“Compared with petrol and diesel, LPG is the best environmental alternative and is a low carbon content fuel that can reduce the emission of carbon dioxide, the main greenhouse gas responsible for climate change,” said Mr Tweedie.

About Todd Energy

100% kiwi owned and operated, Todd Energy is New Zealand’s leading energy producer and provider focused on meeting New Zealand’s energy demands well into the future.

As the only truly vertically integrated energy company in New Zealand, Todd Energy owns and operates its own natural gas, oil, LPG, electricity, cogeneration and solar hot water heating assets, enabling us to manage the entire flow of energy from exploration and production to delivery to our industrial, commercial and residential customers. Todd Energy holds interests in producing fields that account for some 90% of New Zealand’s annual hydrocarbon production and has interests in major oil and gas fields including Maui, Kapuni, McKee, Mangahewa, Pohokura and Maari.

Todd Energy has made significant investments in renewable generation developments. Our electricity generation utilises a diverse range of renewable hydro and geothermal energy including hydro at Aniwhenua in Bay of Plenty, Mangahao Hydro Station and geothermal generation in Kawerau. Todd Energy is also the largest generator of electricity in New Zealand from efficient gas-fired co-generation facilities located in Edgecumbe, Kapuni, Whareroa and New Plymouth.

We are also using technology that harnesses landfill gas at Happy Valley Landfill in Wellington to create electricity, all of which ultimately helps reduce New Zealand’s greenhouse gas emissions.

Committed to growing the solar hot water heating industry, Todd Energy is helping more Kiwis take steps towards a clean, sustainable and secure heating supply. Further renewable energy projects in progress or being evaluated include a hydro project on the upper Kaituna River, a number of potential wind-farms and investigations into new tidal-generation technologies.
www.toddenergy.co.nz

ENDS

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