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Contact enters gas tolling agreement

Operational Update24 March 2021CENUtilities

24 March 2021

Contact and Nova agreement increases

efficiency of thermal generation


Contact Energy (“Contact”) has entered a gas tolling arrangement with Nova Energy (“Nova”).

Under the agreement, Contact will purchase 3.6PJ of gas at market prices and sell back a

similar volume of electricity that Nova would have otherwise generated through their own

peaking plant.


Contact CEO Mike Fuge said: ”This arrangement will help support the operation of our efficient

Taranaki Combined Cycle plant during winter 2021, particularly during the upcoming outages

at Genesis’ Huntly 5 Combined Cycle Gas Turbine in April.”

Mr Fuge said that although this was not new gas to the electricity market, this agreement

allows gas to be directed to the most efficient electricity generating plant in a period of

reduced gas availability and low hydro inflows. “These arrangements mean we can deliver

more electricity from the same energy, effectively reducing the carbon intensity of the

renewable firming thermal generation fleet. We’re delighted to have worked constructively

with Nova Energy once again to deliver an efficient market response.”

-ends-



Investor enquiries

Matthew Forbes

Ph +64 21 072 8578


Media enquiries

Paul Ford

Ph 021 809 589

paul.ford@contactenergy.co.nz

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