NZEC Launches Design Stage of Tariki Gas Storage Project

New Zealand Energy Corp. (NZEC) is proceeding with the design of a natural gas storage project at the depleted Tariki field onshore New Zealand, saying it is moving at an accelerated pace to bring the project into service by year-end to help with the country’s tightening supply.

It said that recently completed drilling at the Tariki-5A well “confirmed the viability of Tariki as a gas storage field”. The well started commercial production late last year.

“[T]he recently completed Tariki-5A well intersected the target Tariki sands 11m higher than prior wells and has confirmed the presence of significant remaining free gas and condensate in place up-dip in the field”, with 55 meters (180.45 feet) of high-quality net sand intersected, NZEC said in an online statement.

“Work is in progress to update the associated reserves and associated forecasts”.

Studies have shown that Tariki, which produced about 50 billion standard cubic feet (Bscf), could safely store 25-40 Bscf, according to the New Plymouth-based company.

At Tariki-5A, flow rates yielded as much as over four million standard cubic feet a day (MMscfd) but stable rates were only about one MMscfd, plus 25-30 barrels per day of condensate, NZEC said.

The storage project is to be developed in three stages. “The scope of Stage 1 has yet to be finalized, however the target is injection at 10 to 15 mmscf/d and extraction at ~30 mmscf/d”, it said.

“Most of the required infrastructure for Stage 1 is already in place, with the exception of the final stage compression required at the well site”, NZEC added. “With respect to the latter it is likely that an existing mobile unit currently at the Waihapa Production Station can be modified to provide the required wellsite compression”.

“The urgency with which the tightening New Zealand gas market requires additional storage means that the Tariki Gas Storage Stage 1 is being accelerated to enable the commencement of injection in Q4 2025”, it said.

NZEC said that with Tariki-5A well operations completed, it is now focused on restoring oil production from Waihapa wells 6A and H1. It expects to revive production this month.

NZEC and L&M Energy Ltd. each own 50 percent of the Tariki Joint Venture.

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