GNE - Genesis Energy

[Bobdn]

Its good having someone like Shane Jones in Parliament. He seems to have a good handle on things and seems to appreciate the importance of Genesis in our energy mix.

https://youtu.be/O2D2zb8FjL8?si=e5krUbITl7D4NzYj

PS not a NZ First voter but like a pragmatic approach.

[blackcap]

Burning diesel again today. That's going to hurt the hip pocket

And is a great illustration of the need for thermal to back up renewables. And the more renewables, the more back up that is needed. But I doubt any new thermal plants would get resource consent

Also shows the folly of cancelling Lake Onslow, which would have been the perfect back up for renewables (in 10 years when Huntly rankines are retired)

That is the biggest problem with renewables. Especially solar and wind. They are unreliable and intermittent. For every bit of solar and wind you have, you need backup. This is all extra and creates more costs, especially unneeded capital costs. I think wind and solar (at grid level) should be banned.

Well banned is probably strongly worded, but should not be promoted to the extent that it is or subsidised that it is.

[mwri]

Letter to the editor from 'Steven Nichols' an 'Engineer working in the energy sector" in the May 16th 2024 issue of the Christchurch Star

------------------

New offshore gas exploration is unnecessary creating complex issues and serious financial risks for New Zealand.

Onshore gas exploration is not currently banned and there is no domestic need for new offshore supplies. Modelling commissioned by MBIE for the Gas Transition Plan has shown that we can meet current gas demand for residential commercial and industrial purposes from onshore supplies and investment. Offshore gas supplies have traditionally been underpinned by larger petrochemical users such as Methanex and cost more to develop than onshore supplies.

Reopening offshore oil and gas exploration is inconsistent with our Paris Agreement targets and our free trade agreement with the EU (which require us to meet our Paris targets). Failure to meet both has serious financial implications for New Zealand in the form of penalties and purchasing offshore carbon credits. Pursuing new offshore gas exploration will cost New Zealanders more money in the long run and make it harder to meet our decarbonisation targets.

The near grid emergency on the morning of May 9th was less about gas supplies and more about an early cold snap, combined with 700MW of generation undergoing scheduled maintenance. It was an issue of capacity, not shortage of energy.

-------------------------------------

SNOOPY

Thank you snoopy 🙏 lot of misinformation going on about the grid emergency

[Bobdn]

Would be great for Genesis to bring back that fourth Rankine unit

NZ needs it.

[blackcap]

Thank you snoopy �� lot of misinformation going on about the grid emergency

Shows how stupid signing that FTA with the EU was. We really need to get back to off shore gas exploration pronto before it is too late. FTA with the EU be dammned.

[Toddy]

KS 9 officially a duster. This is really concerning news for a number of reasons. Micro and Macro.

Bad news for the shareholders, NZ gas customers and any momentum that Shane Jones was trying to muster up for investment in the NZ Oil and Gas Industry.

[Toddy]

And NZO has just announced that it is leaving the NZX.

[bobestm]

I am new here.
Noting that the share price is in decline, what is the state of affairs for Genesis.
- KS-9 not as successful as hoped
- Huntly mothballed ?

Have I got anything wrong? Or missing something?

[Waikaka]

Letter to the editor from 'Steven Nichols' an 'Engineer working in the energy sector" in the May 16th 2024 issue of the Christchurch Star

------------------

New offshore gas exploration is unnecessary creating complex issues and serious financial risks for New Zealand.

Onshore gas exploration is not currently banned and there is no domestic need for new offshore supplies. Modelling commissioned by MBIE for the Gas Transition Plan has shown that we can meet current gas demand for residential commercial and industrial purposes from onshore supplies and investment. Offshore gas supplies have traditionally been underpinned by larger petrochemical users such as Methanex and cost more to develop than onshore supplies.

Reopening offshore oil and gas exploration is inconsistent with our Paris Agreement targets and our free trade agreement with the EU (which require us to meet our Paris targets). Failure to meet both has serious financial implications for New Zealand in the form of penalties and purchasing offshore carbon credits. Pursuing new offshore gas exploration will cost New Zealanders more money in the long run and make it harder to meet our decarbonisation targets.

The near grid emergency on the morning of May 9th was less about gas supplies and more about an early cold snap, combined with 700MW of generation undergoing scheduled maintenance. It was an issue of capacity, not shortage of energy.

-------------------------------------

SNOOPY

I will stick my oar in on this one. Historically in NZ, any large gas discovery be it onshore (Kapuni) or offshore (i.e. Maui) has needed large buyers of the natural gas before they can be developed. Traditionally so they can boost associated condensate production but also because the processing plants have to produce the gas, then there is an obvious need to have someone who can swing demand so that gas is not burned and wasted. Methanex is a critical part of this ecosystem by being able to start and mothball methanol trains to match demand to supply. With out these kinds of large customers no one can invest properly in onshore as they are going to be left with unsaleable gas and fields that cant swing up or down to meet demand. Ahuroa was to partially deal with this but then it got broken by the energy traders swinging too hard on the cushion until they had water breakthrough and lost most of their storage space.

Seems to me KS-9 is completely turned off and watered out. So that is $65 million dollars shredded and Kupe will need decommissioning sooner than expected. The gas left in Kupe will be worth more as a lot of demand is inflexible but I suspect it is going to be an untidy end to NZ domestic gas production.

I looked up Steven Nichols on LinkedIn and he had put this on his profile description:
"Experienced Energy Engineer with a passion for energy efficiency and decarbonisation. Enjoys thinking outside the box and considering the wider impacts of engineering design on the environment and people. Skilled at process analysis and energy auditing of industrial and commercial facilities. Strong experience partnering with food and beverage facilities, ranging from dairy factories to distilleries, to achieve their sustainability and energy efficiency goals."

People can read his self written blurb and form their own opinions on if he might have a 'decarbonisation' tinted glasses when thinking about the gas market.

[Snoopy]

I am new here.
Noting that the share price is in decline, what is the state of affairs for Genesis.
- KS-9 not as successful as hoped
- Huntly mothballed ?

Have I got anything wrong? Or missing something?

bobestm, if you want to find out about key events in a company's history that may be affecting the share price, the best thing to do is do a search for:

(company) investor relations

where (company) represents the name of the company of your interest. So in this case (company) = 'genesis energy'. The result of such a search leads me here:
https://www.genesisenergy.co.nz/investor

Click the tab that says 'results and reports' and the drop down menu leads you to a 'market announcements' option. You will then be able to access all of the NZX announcements which are dated and in chronological order. Generally you would look for information released to the market at the latest half yearly reporting date. If you want investor reaction to any market announcement, you simply go back through the pages of this 'Sharetrader' thread to that date (you will note that all posts have a date on them) , and see what members of the 'Sharetrader'; community said about the announcement at the time. Of course it is not always only the half year announcements that matter. The most recent NZX release dated 22nd May 2024 titled 'Kupe Production Update' might have something to do with the more recent share price fall?

SNOOPY