Kupe Keeps On Keeping On
It seems that there are more reserves in the famous Kupe gas and oil field than we first thought. Significantly more! It’s just been reported that the offshore field in Taranaki has announced a 23% increase in gas reserves meaning that the field’s life is likely to be extended well beyond the 15 to 20 years that was originally expected when it first came on stream in 2009.
This is major news as far as the New Zealand energy industry is concerned. Kupe provides approximately 15% of New Zealand’s annual gas demand, and about 50% of NZ’s anticipated LPG demand until 2025. The surprising reserve increase in the field not only provides additional volume from within the existing development but also from the planned further development including onshore compression and future wells. It’s certainly a positive development for the region of Taranaki, and the country as a whole.
Owners and shareholders also found something to celebrate as this news broke. New Zealand Oil and Gas shares rose nearly 10 % while Genesis, a shareholder, also saw their share price increase.
John Carnegie, the chief executive of the Petrol Exploration and Production Association of New Zealand is, understandably, delighted with the discovery off the South Taranaki coast.
“ This is good news for the homes, schools, hospitals and industries that rely on natural gas. It is powering the export industries that will lead our recovery, as well as providing back-up electricity and keeping our barbeques running over summer.”
Carnegie was also quick to put the discovery into an economic and global context:
“Natural gas is effectively New Zealand’s economic and energy safety net. Given this importance, it makes sense to produce it here in New Zealand rather than relying on imports from overseas.”
The discovery of these unexpected reserves at Kupe will go a long way to allaying fears that gas was on the way out. With several gas and oil fields nearing the end of their life, Kupe breathes new life and optimism into the industry. It also means we shouldn’t stop buying gas appliances like the cookers, heaters and hot water systems that have become common features in New Zealand homes.
While there’s still gas to feed these appliances, there will also be a need for the gasfitters we rely on to install and maintain them. This gasfitter and plumber in Rodney was relieved and surprised to read that the Kupe field contained more gas than first thought, and was quick to remind customers that he’d be in business for a while yet.
