Kupe Project Close To Commissioning
June 10th, 2009
The Kupe gas/condensate project construction is nearing completion at its south Taranaki production station, and work on testing the first of many systems involved at the station located west of Hawera has begun. Kupe operator Origin Energy says construction of the production station is around 94% complete. Origin says the plant is on track for first commercial gas sales to begin in September.
Construction of the first 2 storage tanks and associated facilities at the Omata tank farm near New Plymouth is progressing well with one tank already at full height. Laying of the export pipeline to carry light oil from the tanks to Port Taranaki is progressing. The $1.1bn Kupe project has been employing about 900 workers on its various sites, but this will reduce to about 20 when the project comes on stream. Electricity generator Genesis Energy has contracted to take 20PJ of gas a year from Kupe, which will also produce about 2m barrels of light oil and 100,000 tonnes of LPG a year.
Origin says reservoir modelling and simulation of the Kupe South field is ongoing, with an update on reserves due at the end of June. Reserves on which the project’s financing was undertaken were put at 254PJ of gas, 14.7mmbbls of light oil and 1.1m tonnes of LPG. NZ Oil and Gas, which has a 15% stake in Kupe, estimates its revenue from its share of the Kupe liquids will be more valuable than what it is earning from the Tui oilfields.
Copyright © Media Information Ltd
NZ Energy & Environment Business Week
Amalgamated Dairies