How Much Gas Does it take to run EP3/Unit 5?
Quote:
Originally Posted by
Jantar
Snoopy wrote:
That is an average of 5.4PJ per year. I think that largely takes care of the 'oversupply' situation that might force Genesis to run Unit 5 at a loss..
Its around 3 - 4 months suply for something like E3P, Otahuhu or Stratford CCGTs.
p115 of the Genesis Prospectus states that the
"total field production of volumes forecast for natural gas are 22.3PJ for FY2014 and 21.1PJ for FY2015"
Genesis has the contract for all of this natural gas. If 5.4PJ of gas will run E3P for 3 months, then EP3 as a baseload station could theoretically consume 4 x 5.4PJ = 21.6PJ in FY2015, which is more than the entire output of Kupe in 2015! I know that Genesis does buy in other gas from other fields. But it does seem unlikely that E3P was designed to consume all the gas consumed by Kupe, especially when Genesis made note that they were in an oversupply of gas situation right up to FY2020.
We know that Contact are contracted to buy 5.4PJ per year on average. According to Jantar's figures, this means that Kupe can no longer support EP3 going forwards. So it may be that this contract with Contact Energy has completely corrected Genesis's excess gas supply. That would be very positive for Genesis shareholders going forwards.
SNOOPY