NZ's Genesis secures additional gas for Huntly power station

New Zealand's power and gas company, Genesis Energy, has secured up to 3.2 petajoules (PJ) of gas for Unit 5 of its dual gas and coal-fired Huntly Power Station, it announced on August 12. This acquisition will enable Unit 5, the largest electricity generation unit in New Zealand, to return to full capacity for the first time this winter.

Starting this week and continuing through to October 2024, the additional gas will primarily fuel the 400 MW Unit 5, which is capable of powering up to 400,000 households at maximum output.

This move comes in response to unprecedented pressure on the electricity system, Genesis said, caused by low water levels, extended periods of light wind, and a limited supply of gas to support backup thermal generation. In recent years, around 10% of the country's electricity has been generated using gas.

The agreement was made possible by the flexibility of Canadian methanol producer Methanex, which will temporarily idle its manufacturing operations in New Zealand until the end of October.

“This gas supply will support electricity generation through the remainder of winter and into spring. We've worked hard to support the market. Huntly is staffed to operate two 240 MW Rankine units, but the team has managed to make three Rankine units available, adding an additional 240 MW to the market,” said Tracey Hickman, chief wholesale officer.

In addition to the extra gas supply, Genesis Energy has also secured more coal for Huntly. Five shipments have already been delivered, with twelve more confirmed, including four arriving over the next month. Future coal requirements are under review, with further shipments expected to be ordered.