5 Nov 2009

Contact Energy drilling three new gas wells

10:20 pm on 5 November 2009

Contact Energy has started drilling three new wells at its $250m Ahuroa underground gas storage field near Stratford, aiming to speed up the collection of gas for its yet-to-be-completed peaking power plant.

Contact is currently injecting 40 terajoules a day into the field, and expects to complete drilling by the end of the year.

Managing director David Baldwin says the gas storage facility gives Contact the flexibility to store gas when hydro lakes are full, as is the case now and over the summer months.

He says it'll start using the gas from the middle of the year, when the peaking plant is expected to be operating.