Todd looks at LNG imports to power proposed gas plants

Todd Energy is considering importing fuel for up to three gas-fired power stations planned for Auckland.

Two competitors, Contact Energy and state power company Genesis Energy, had been examining the feasibility of importing liquefied natural gas (LNG) and concluded last year that it was economic.

Todd has proposed gas-fired plants as an alternative to Transpower's controversial $500 million transmission line from Taupo to South Auckland.

In its submission to the Electricity Commission, it says, "Todd Energy's parent, Todd Petroleum Mining Company, has already commenced work on options to secure long-term gas from sources in New Zealand and offshore".

There was sufficient gas to supply a 200-megawatt plant with existing gas reserves.

"To further ensure availability of gas beyond 2015, in addition to increasing its exploration activities, Todd has embarked on getting gas to New Zealand from offshore."

The submission says it has identified three potential sites for gas-fired power stations, two in central Auckland with transmission lines that cross the properties and the third in South Auckland.

Two of the sites were big enough to take gas-fired turbines in modules of 200MW.

Todd's preference was to initially build one 200MW plant, then add 50MW to 200MW of capacity as the commission saw the need.

Todd Energy's commercial operations manager, Babu Bahirathan, said it was more expensive to build a 200MW gas-fired plant with two 100MW turbines than with a single 200MW turbine.

Todd was talking to the commission, and had been trying to talk to Transpower about the extra cost of a proposal in which capacity was built up module by module.

At issue was a payment to the power plant for the costs saved in not having to build a transmission line, how much the payment would be and who would pay it.

Todd had been in court since 1998 against Transpower over similar issues related to its co-generation power plant at Hawera, Mr Bahirathan said.

The commission has received 125 submissions on alternatives to Transpower's pylon project.

Bob McQueen, vice-chairman of the anti-pylon lobby group New Era Energy, said Todd Energy's suggestion was the latest in a series of proposals.

"We are feeling very good. These things just keep on coming out. There are plenty of opportunities in the Auckland region.

"That's the solution -- not a transmission line from way down here (in Hamilton)."

Mr McQueen said relatively cheap diesel "peaking plants" had also been proposed.

These would kick in only when peak demand was high.

Peak-time demand was Auckland's major issue.

He hoped the commission might ultimately find a solution involving a combination of new ideas and existing proposals such as plants at Kaipara Harbour, Marsden and Otahuhu.

- nzpa