- Operating principles
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- Todd Energy wins TRC environmental award
- Todd announces new Vice President NZ Upstream Energy
- Todd Energy Canada investment
- Gas project firing up
- Worker died of natural causes
- Sudden death at rig site
- Todd aiming for full Mangahewa capacity by October
- Todd Energy opens new gas production facility
- New super quiet auto drilling rig arrives at port
- New rig purpose built for Taranaki operations
- Scramble for places in oil-drilling course
- News archive 2013
- News archive 2012
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Todd aiming for full Mangahewa capacity by October
Todd Energy says its expanded gas processing facility at the McKee-Mangahewa production station should be running at full capacity by October.
The company today formally opened the $120 million second Mangahewa processing train – MET2 – which will increase Todd’s annual raw gas processing capacity from 20 PJ to 45 PJ.
Chief executive Paul Moore says that until now, the company had backed off MET1 to run gas through MET2 for its commissioning and testing. The two trains will now run concurrently with production ramping up to full capacity by about October.
About the same time the company will start earthworks for a $40 million-plus project to de-bottleneck the 13-year-old MET1 unit. Some additional land has already been acquired for the work, which will involve adding additional compression equipment and low-pressure units.
The project is expected to take about a year and will help ensure the firm can maintain production rates as the field’s natural reservoir pressure declines, Moore said ahead of the formal opening today.
MET2, opened today by Economic Development Minister Steven Joyce, delivered its first gas 18 months after the decision to proceed with the investment in October 2012. The main processing units were fabricated by Propak Systems in Calgary and shipped from Houston, Texas, in 30 modules.
WorleyParsons managed the engineering procurement and construction, which also involved fabrication of the hot oil heater by New Plymouth’s Fitzroy Engineering. Other components and services were also provided by New Zealand firms.
About 218,000 man-hours were worked on the development – with no lost-time injuries – taking the New Zealand spend to $75 million.
Moore says the result is a “state-of-the-art” processing facility. Propak are world-leaders in modular processing assemblies. Their design was then adapted for the field’s gas composition and New Zealand electrical and seismic standards, he says.
MET2 is part of an $840 million project Todd Energy committed to in January 2012 to develop Mangahewa and ensure a gas supply to methanol-maker Methanex. Included in that figure is the drilling and connection of 27 wells in the Mangahewa field and the laying of a nine-kilometre corridor of pipelines connecting those wells through the production station and onto the Maui pipeline.
Todd’s investment, underpinned by a 10-year supply contract, in-turn enabled Methanex to re-start a mothballed unit at Motunui in July 2012 and the smaller Waitara Valley plant in October last year. The company produced 500,000 tonnes of methanol in the March quarter, while its 2013 production was the highest in 11 years.
Moore says the success of the MET2 development reflects the firm’s geoscience expertise in understanding how to tap the field, the decision to invest in a quality drilling rig and crew, and the execution of the plant construction phase.
With the Bentec Euro 450 rig acquired in January, the company should now be able to drill wells to depths of 5,000 to 5,500 metres within a month, he says. That has reduced costs and the volume each well needs to deliver to be viable.
The company also plans to use the rig to drill the Te Kiri North-1 well in PEP 51159 later this year.
Moore says the $42 million rig purchase, and the drilling and other hydrocarbon trades training now available in the region, are important components of the firm’s strategy to develop a local business, run and operated by local people, to deliver a local Taranaki resource.
Written by Gavin Evans.