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Maui pipeline to be open to non-Maui gas
27 October 2004 - The Maui pipeline is expected to be available to other gas industry users later this year following an agreement between the pipeline owner Maui Development Ltd (MDL) and gas transmission operator NGC Holdings Ltd.
MDL—which is owned by Shell New Zealand, OMV New Zealand and Todd Energy — has entered into an agreement with NGC for the development of an ‘open access’ operating system which will see the Maui pipeline carry non-Maui gas.
Under the agreement, NGC will use a single information platform to operate open access arrangements for both the NGC pipeline system and the 313km onshore Maui pipeline from the Maui production station in south Taranaki to Huntly power station (1000MW), south of Auckland.
NGC chief executive, Phil James, said the agreement is a significant development for gas transportation arrangements for the industry post-Maui.
NGC is already the technical operator of the Maui pipeline, and the agreement extends that role to system operator for the Maui open access regime.
While NGC’s gas transmission pipelines have been available to gas shippers under non-discriminatory open access arrangements for more than a decade, the Maui pipeline is being prepared for open access gas transportation for the first time. To date the pipeline has been dedicated to moving gas from the Maui field under a contract with the Crown.
NGC recently completed an industry consultation process on the need to redevelop open access arrangements for its own 2200km of transmission pipelines to accommodate significant changes in gas supply.
NGC’s existing regime is founded on the high flexibility of the Maui field, but as Maui reserves decline, supply is becoming increasingly complex and less flexible. Changing retailer needs and Government policy expectations also require adaptation of transportation arrangements.
Mr James said that the primary focus has been on more highly sophisticated information technologies for effective pipeline system administration. NGC has engaged leading energy and utilities sector technical experts, CGNZ, an affiliate of Capgemini, to help develop the access regime framework and supporting information systems.
Mr James said considerable cost savings are available by running the open access arrangements for the NGC and Maui pipelines projects simultaneously. Use of a single system and operator will facilitate ease of access.
The revised access regime for NGC’s pipelines and the open access arrangements for the Maui pipeline will roll out over the next year.
