Contact Energy (Contact) has signed an agreement with gas producer OMV New Zealand to secure 37 petajoules (PJ) of gas to be delivered from 2021 to 2025.

OMV have also notified Contact that it will supply at least 6.3PJ of Contact’s 10PJ entitlement from Maui in 2021.

In addition, Contact has also entered into an additional new 3.6PJ gas agreement with an undisclosed third party for delivery in 2020.

Chief Generation and Development Officer James Kilty said Contact was pleased to secure this supply. “Today’s agreements secure our fuel position in line with firming requirements for the medium term.”

He said the agreements supported the ongoing transition to a lower-emissions future for New Zealand. “We’re continuing to make progress in expanding our geothermal generation at Tauhara, which is New Zealand’s pre-eminent renewable development in that it does not rely on firming fuel.

“There is an ongoing need for gas generation to firm intermittent sources of renewable generation such as wind and hydro generation. We need to ensure there are affordable and stable alternatives when weather-dependent generation options are unavailable.”