Contact enters Maui mining row

Contact Energy has applied to participate in the High Court proceedings in which Methanex has sought an injunction to delay the the redetermination of the Maui contract.

The Maui contract provide for an independent expert to determine the level of remaining gas reserves if the parties are unable to reach agreement.

Methanex claims that the MMC and the Crown have not provided sufficient information on the gas reserves in the field and wants to delay the redetermination process.

Maui gas executives say the Methanex action is regrettable in that it exposes the country to a risk of discontinuity of gas supply in later year.

The Natural Gas Corporation (NGC), which is also buys Crown gas, says it has enough information to develop an informed assessment of the Maui reserves. NGC announced that it was joining the action last week.

"Reaching an early redetermination of the Maui reserves is important for New Zealand and for the gas industry as it will clarify the current gas supply position and allow for the timely development of future gas reserves," says NGC.

Contact's chief executive, Steve Barrett, says: "Contact Energy has concluded that it is prudent and in the company's interests also to join as a party to this action. Contact opposes Methanex's application to delay the redetermination process."

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