15 September 2011

Prime Minister Opens Todd Energy McKee LPG Plant

Prime Minister John Key officially opened Todd Energy’s new $75 million Liquefied Petroleum Gas (LPG) plant at the McKee Production Station near Waitara in Taranaki today.

The plant is an important addition to Todd Energy’s investment in Taranaki and to New Zealand’s energy infrastructure, Paul Moore, CEO Todd Energy said at the opening today.

“It is the first straddle type plant in New Zealand. It is fed by pipeline specification gas that is both propane and butane rich, extracts LPG and returns the lean gas back to the pipeline.” Mr Moore said.

The plant takes gas from the Mangahewa and Pohokura fields, and has a production capacity of 27,000 tonnes per year. Pohokura gas is piped from Pohokura production station via Todd pipelines to McKee for processing. LPG is extracted from the gas and the remaining lean gas is exported to the Maui Pipeline. The LPG produced by the plant is then taken by road tanker by Todd Energy’s retail division, Nova Energy for distribution to customers around the country.

LPG is one of the most environmentally friendly fuels available. It can be used for heating, cooking, hot water and in vehicles, and is an easily transferable fuel via road, sea or rail.

Mr Moore acknowledged the assistance and support of local government, hapu and the local community in constructing this plant. “We realise that our operations have an impact on those around us and we do make a significant effort to be a good neighbour. We are grateful for your support and your willingness to work with us to achieve the best outcome for everyone.”

The project was completed over 18 months by a mainly local Taranaki contractor base (led by Transfield Worley of New Plymouth). Mr Moore acknowledged the commitment and dedication of those contractors, who completed the project without any lost time injuries.

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