Power station waste of gas - Greens

A new Kaipara gas-fired power station is a bad idea and a waste of gas, the Green Party says.

State-owned power company Genesis Energy is drawing up plans to build the $500 million station on the shores of Kaipara Harbour north of Auckland.

If it is built, it could delay Transpower's unpopular plan for new power pylons running through the Waikato.

Greens co-leader Jeanette Fitzsimons said it was not known whether there was enough natural gas to run a gas-fired station in Kaipara. "And if we did, it should be sent down pipes and burned directly in homes and businesses, rather than being wasted on making electricity," she said.

"The SOE (state-owned enterprise) acknowledges that if a new supply cannot be found here, it would have to import liquefied natural gas (LNG) to run stations such as Kaipara.

"But LNG can only be imported by building a hugely expensive terminal to store the gas at minus-160degC. Such installations threaten large fires and explosions if they leak." Ms Fitzsimons said that if more gas was found, it would be better to connect more Auckland homes and businesses to the system so it could be used as efficiently as possible. "Burning gas to make electricity means at least half of the energy literally goes up in smoke."

Transpower says new lines are needed by 2010, before a critical shortage of electricity.

Genesis chief executive Murray Jackson said the Kaipara project was not yet at the "build stage" as the company was working on developing gas reserves.

- NZPA