Port Taranaki selected as LNG import site

The first steps are being taken to put in place the infrastructure to import liquified natural gas (LNG) with the selection of New Plymouth's port as the site of a potential import terminal.

Genesis Energy and Contact Energy today said they had selected Port Taranaki as the preferred site for a LNG import terminal.

The two have formed a joint venture to get resource consents for the terminal but no decision has been made to build one or to import LNG when New Zealand's domestic gas supply runs down.

Contact chief executive David Baldwin and Genesis Energy chief executive Murray Jackson said that while the resource consent process would soon be started, the move was all about enhancing options.

The joint venture company called Gasbridge would run a community consultation process and manage obtaining resource consents.

"Both Contact and Genesis Energy have a strong preference to use domestic natural gas," said Mr Baldwin.

Port Taranaki had been selected as a preferred site because it had a deep water port and was in a region with a natural gas distribution infrastructure.

Mr Jackson said in the event of a future natural gas shortage, the LNG option could provide New Zealand with a secure and safe supply of natural gas until new domestic discoveries were made and brought to market.

The proposed terminal would involve a new purpose-built berth at the end of the main breakwater inside the port, with the LNG being piped along adjacent to the breakwater and stored in a new tank at Contact's New Plymouth Power Station.

- NZPA