Beach delivers gas supply boost for New Zealand

Aerial shot of Kupe Gas Plant (New Zealand)
Kupe Gas Plant (Image: Beach Energy)

New Zealand’s gas supply has received a much-needed boost with Beach Energy switching on a new compressor, increasing gas production at the Kupe Gas Processing Facility near New Plymouth on the North Island.

The delivery of the $72 million Kupe Compression Project safely and within budget means the Kupe Gas Plant, which had seen declining production in recent years, can ramp back up to its full capacity of 77TJs per day—the equivalent of supplying 15 per cent of New Zealand’s natural gas demand.

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The compressor increases production by reducing the back pressure on the wells, extending the production plateau.

While some delays were experienced due to COVID-19 supply chain issues, Beach Energy says the project has been delivered within budget, and most importantly, with no lost time injuries from the 170,000 person-hours onsite.

Beach Energy managing director Matt Kay said it was vital New Zealand had a stable supply of natural gas to support its every-day needs.

“The successful delivery of this project is good news as it keeps more natural gas flowing into New Zealand homes and businesses for many years to come,” Kay said.

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“I would like to say a big ‘thank you’ to all the Beach Energy staff and contractors who supported this project—you’ve done yourselves proud, particularly through your commitment to safety on the job.”

Preparation work for a potential Kupe East development well within the Kupe field is expected to commence during FY22.

Beach said this could lead to the drilling of a potential development well in FY23, subject to joint venture and regulatory approvals.

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