1 00:00:00,040 --> 00:00:02,559 Speaker 1: So l Energy is go new facility to be built 2 00:00:02,560 --> 00:00:04,559 Speaker 1: in Taranaki Energy is part of the buffer plan for 3 00:00:04,600 --> 00:00:06,840 Speaker 1: the dry gears. Contracts are due to be signed mid year. 4 00:00:06,920 --> 00:00:08,959 Speaker 1: Completion target if for next year. The bill's about a 5 00:00:09,000 --> 00:00:12,240 Speaker 1: billion dollars. Mike Fouji is the CEO at Contact Energy 6 00:00:12,280 --> 00:00:14,239 Speaker 1: and is with us. Good morning morning, make I tell 7 00:00:14,280 --> 00:00:16,280 Speaker 1: are you very well? Indeed? Is this a good idea? 8 00:00:17,600 --> 00:00:21,200 Speaker 2: Yes, it's sensible, let's put it that way. It's not 9 00:00:21,320 --> 00:00:24,799 Speaker 2: the only solution. But the important thing is it just 10 00:00:24,960 --> 00:00:27,639 Speaker 2: adds to the overall security of our energy spy in 11 00:00:27,640 --> 00:00:30,639 Speaker 2: this country. So I'd classified as sensible. 12 00:00:31,000 --> 00:00:34,320 Speaker 1: Reassure people who wonder why we need to build something 13 00:00:34,320 --> 00:00:37,200 Speaker 1: that will only be used occasionally and how that makes 14 00:00:37,200 --> 00:00:38,240 Speaker 1: sense business wise. 15 00:00:39,400 --> 00:00:43,639 Speaker 2: Look, it just removes the drama out of the system. 16 00:00:43,880 --> 00:00:47,400 Speaker 2: And I think that's the important thing. Is that when 17 00:00:47,479 --> 00:00:50,640 Speaker 2: prices have spiked very high, when we end up dispatching 18 00:00:51,040 --> 00:00:55,200 Speaker 2: diesel into the electricity system, and when gas suppliers can't 19 00:00:55,240 --> 00:00:59,920 Speaker 2: get gas, gas users can't get gas, everyone gets very uptight. 20 00:01:00,640 --> 00:01:04,640 Speaker 2: And this just brings a rationality to the market. We're 21 00:01:04,680 --> 00:01:07,000 Speaker 2: not worrying about tomorrow. 22 00:01:07,040 --> 00:01:09,480 Speaker 1: Can you what happened to the argument that Huntley solved it. 23 00:01:09,520 --> 00:01:11,360 Speaker 1: So you guys do a deal. There's plenty of coal. 24 00:01:11,440 --> 00:01:14,039 Speaker 1: Huntley is the backup. That's the problem solved. Is that 25 00:01:14,120 --> 00:01:14,760 Speaker 1: not true? 26 00:01:15,480 --> 00:01:18,200 Speaker 2: Look, I think it's one solution. You need many solutions 27 00:01:18,200 --> 00:01:20,880 Speaker 2: to that. It's not one solution. So that's all you've 28 00:01:20,880 --> 00:01:24,319 Speaker 2: got Huntley, You've got the demand flex of the smelter. 29 00:01:25,280 --> 00:01:28,399 Speaker 2: We'd like to see increased operating ranges on our hydro 30 00:01:28,520 --> 00:01:31,679 Speaker 2: lakes and this is just another part of that suite 31 00:01:31,959 --> 00:01:36,800 Speaker 2: of solutions. And so there's good risk mitigation if something 32 00:01:36,840 --> 00:01:40,560 Speaker 2: goes wrong with Huntley, if there is another unexpected shortage 33 00:01:40,600 --> 00:01:43,120 Speaker 2: of gas. This just solve that. 34 00:01:43,440 --> 00:01:46,880 Speaker 1: Can you go to the market periodically for LNG and 35 00:01:46,920 --> 00:01:49,560 Speaker 1: simply say, hey, we're back, give a sum. Does it 36 00:01:49,600 --> 00:01:50,120 Speaker 1: work that well? 37 00:01:50,960 --> 00:01:52,600 Speaker 2: You can do anything you like as long as you're 38 00:01:52,600 --> 00:01:57,000 Speaker 2: willing to pay for it, is the general mantra. But yes, 39 00:01:57,120 --> 00:01:59,040 Speaker 2: you will be able to get spot sales. I think 40 00:01:59,080 --> 00:02:03,680 Speaker 2: the thing about alan G is that our winter coincides 41 00:02:03,720 --> 00:02:06,840 Speaker 2: with the Northern Hemisphere summer, and so there is lower 42 00:02:06,880 --> 00:02:09,760 Speaker 2: demand for energy in the North and so there probably 43 00:02:10,120 --> 00:02:14,320 Speaker 2: will be both cargoes available at that time, or they are. 44 00:02:14,200 --> 00:02:17,079 Speaker 1: More likely to be the Minister's assurances that we're all 45 00:02:17,120 --> 00:02:18,800 Speaker 1: going to save in the long run true or not, 46 00:02:18,880 --> 00:02:19,360 Speaker 1: do you think? 47 00:02:20,520 --> 00:02:24,600 Speaker 2: Look, I think the certainty will simply reduce prices. I 48 00:02:24,639 --> 00:02:27,720 Speaker 2: think what's important is that the cost of it is 49 00:02:27,760 --> 00:02:30,399 Speaker 2: spread as widely as possible. At the moment, I think 50 00:02:30,440 --> 00:02:33,800 Speaker 2: they're proposing that it goes just to electricity users. I 51 00:02:33,840 --> 00:02:36,840 Speaker 2: think all gas users should be helping pay for it. 52 00:02:37,320 --> 00:02:39,480 Speaker 2: And I think the other thing that's really important is 53 00:02:39,520 --> 00:02:42,720 Speaker 2: that if they could keep bipartisan support, because in the 54 00:02:42,840 --> 00:02:45,480 Speaker 2: energy sect of these investments are long term. They don't 55 00:02:45,560 --> 00:02:47,560 Speaker 2: run on a three year cycle. And I think those 56 00:02:47,600 --> 00:02:49,760 Speaker 2: are the two things that I try and tweak and improve. 57 00:02:49,960 --> 00:02:53,400 Speaker 1: Go appreciate your insight. Mike Fushu's the chief executive at Contact. 58 00:02:53,760 --> 00:02:56,639 Speaker 2: For more from the Mic Asking Breakfast, listen live to 59 00:02:56,800 --> 00:02:59,840 Speaker 2: news talks that'd be from six am weekdays, or follow 60 00:02:59,840 --> 00:03:01,400 Speaker 2: the podcast on iHeartRadio.