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Todd begins construction of $65m Taranaki LPG plant
4 February 2010 - Todd Energy has begun building a $65 million LPG plant at its Mangahewa-McKee production station site in Taranaki.
Sources: Todd Energy and Lindsay Clark Communications
Major earthworks for the first stage of construction began for the LPG plant which is expected to provide 200,000 hours of work in Taranaki.
Todd plans to produce LPG from increased gas it plans to have available from the current re-drilling of its existing onshore Mangahewa gas condensate field plus extraction of LPG from its 26% share of the gas condensate stream from the nearby offshore Pohokura field.
Todd Energy is currently drilling the third well in its current Mangahewa development drilling programme, the Waitui-1. It late last year drilled the Mangahewa-4 and Mangahewa-6 wells.
Richard Tweedie, managing director of Todd Energy said “construction work will keep Taranaki businesses busy for the next 18 months, creating in excess of 200,000 man hours of work.”
Major earthworks for the LPG plant, associated storage and load out facilities are expected to be completed in May this year.
Mr Tweedie said the main plant construction takes place next summer with a site workforce of approx 45 people at anyone time. At peak periods up to 100 workers may be required on site. The plant is expected to be completed in mid 2011.
Enerflex System Ltd based in Edmonton, Canada will supply the recovery plant packaged process equipment.
New Plymouth based company, Transfield Worley will carry out the engineering, procurement and construction (EPC) of the LPG plant including installation of the LPG packaged equipment and provision of LPG storage bullets and a truck load out facility.
Mr Tweedie said fabrication work and mechanical and electrical installation work is yet to be competitively tendered to local contractors.
Todd Energy is also in the process of placing a contract with local engineering company Plant & Platform for pipeline modifications required as part of this project, which also involve other local contractors.
Expected delivery of all LPG plant equipment is expected by December 2010 and installation & hook-up construction work should be completed by July 2011.
Todd Energy plans to deliver LPG to customers in the North and South islands via wholly-owned retail company, Nova Energy.
Related links
2010 NZ Petroleum Conference - Todd - Petroleum block offers
