1 00:00:00,120 --> 00:00:02,360 Speaker 1: So the government moving on this energy sector to try 2 00:00:02,360 --> 00:00:04,440 Speaker 1: and sure up the supply. Part of it is getting 3 00:00:04,480 --> 00:00:05,960 Speaker 1: the regulation out of the way so we can get 4 00:00:06,000 --> 00:00:08,280 Speaker 1: the LNG into the country. Port Taranaki's part of that 5 00:00:08,280 --> 00:00:10,360 Speaker 1: particular picture of the boss is Simon Kratick is well, 6 00:00:10,360 --> 00:00:11,680 Speaker 1: a Simon, very good morning to you. 7 00:00:12,560 --> 00:00:13,200 Speaker 2: Good morning, Mike. 8 00:00:13,280 --> 00:00:15,680 Speaker 1: Did it surprise you to learn yesterday from the minister 9 00:00:15,720 --> 00:00:17,400 Speaker 1: that's going to take them a year to get regulation 10 00:00:17,480 --> 00:00:19,200 Speaker 1: out of the way, And if so, why is that? 11 00:00:22,079 --> 00:00:24,200 Speaker 2: No, it didn't surprise me. I mean, I think the 12 00:00:24,600 --> 00:00:28,520 Speaker 2: challenges that these projects are large and complex. What we're 13 00:00:28,560 --> 00:00:30,240 Speaker 2: doing here at the port is looking at how we 14 00:00:30,280 --> 00:00:33,320 Speaker 2: can play a role and stand up a solution that's 15 00:00:33,400 --> 00:00:36,159 Speaker 2: low cost and high capacity. But we'll just have to 16 00:00:36,159 --> 00:00:39,519 Speaker 2: wait for all of the industry to get together and 17 00:00:39,920 --> 00:00:41,720 Speaker 2: the enabling regulations to be put. 18 00:00:41,520 --> 00:00:43,120 Speaker 1: In place, Which is what I was going to ask 19 00:00:43,200 --> 00:00:45,760 Speaker 1: Channel or is interested there? The Marsden people Genesis, I 20 00:00:45,800 --> 00:00:49,080 Speaker 1: think are also interested. Is everybody coordinating or you are 21 00:00:49,120 --> 00:00:51,080 Speaker 1: all in it saying well, this is an opportunity for 22 00:00:51,280 --> 00:00:53,000 Speaker 1: our bottom line, so we'll get stuck in. 23 00:00:54,560 --> 00:00:56,600 Speaker 2: Well, I think there's definitely a coalition of the willing 24 00:00:57,280 --> 00:01:00,880 Speaker 2: who can see the benefits of LNG import. It seems 25 00:01:00,880 --> 00:01:05,640 Speaker 2: like the gas industry company is the logical coordinating body, 26 00:01:06,040 --> 00:01:08,440 Speaker 2: and I think that coordination really needs to kick off. 27 00:01:08,480 --> 00:01:13,720 Speaker 2: We're in contact with the major players that would be 28 00:01:13,800 --> 00:01:16,160 Speaker 2: interested in it, and we're looking at the benefits of 29 00:01:16,760 --> 00:01:19,800 Speaker 2: our location, and it's fair to say there's a range 30 00:01:19,840 --> 00:01:24,559 Speaker 2: of options, but we think our existing infrastructure, available capacity, 31 00:01:25,480 --> 00:01:30,080 Speaker 2: proximity the Male gas pipeline and potential connection to existing 32 00:01:30,160 --> 00:01:33,240 Speaker 2: underground gas storage means we've got a number of benefits 33 00:01:33,240 --> 00:01:33,880 Speaker 2: for our location. 34 00:01:34,160 --> 00:01:37,520 Speaker 1: Indeed, if they said this afternoon, go how quickly could 35 00:01:37,520 --> 00:01:38,199 Speaker 1: you make it happen? 36 00:01:39,480 --> 00:01:42,520 Speaker 2: Well, I think everyone naturally focuses on the port infrastructure 37 00:01:42,560 --> 00:01:44,840 Speaker 2: as part of the technical solution, but it's fair to 38 00:01:44,840 --> 00:01:49,280 Speaker 2: say the commercial considerations are very broad. So I think 39 00:01:49,400 --> 00:01:52,680 Speaker 2: our part of the physical infrastructure is actually relatively straightforward. 40 00:01:52,800 --> 00:01:55,200 Speaker 2: Allergy has changed a lot in the last twenty years. 41 00:01:55,560 --> 00:01:59,160 Speaker 2: Most of the infrastructure now floats on floating storage and 42 00:01:59,160 --> 00:02:02,200 Speaker 2: regas vessels, so the port infrastructure can be quite simple. 43 00:02:02,320 --> 00:02:05,440 Speaker 2: We think we can stand that up in around eighteen months, 44 00:02:05,800 --> 00:02:07,800 Speaker 2: but it's fair to say the lead time for vessels 45 00:02:07,800 --> 00:02:08,680 Speaker 2: could be longer. 46 00:02:08,600 --> 00:02:10,760 Speaker 1: Okay, and so would you be in a better position 47 00:02:10,840 --> 00:02:13,200 Speaker 1: than many other ports like Marsden or Channel as they 48 00:02:13,240 --> 00:02:15,000 Speaker 1: call themselves, or any other port run the country to 49 00:02:15,000 --> 00:02:16,040 Speaker 1: make this happen quicker or not. 50 00:02:17,280 --> 00:02:19,880 Speaker 2: It depends on scenario. We think we're well placed to 51 00:02:20,000 --> 00:02:25,280 Speaker 2: deliver on small scale LG rapidly. As you scale up 52 00:02:25,360 --> 00:02:28,680 Speaker 2: the port would require more modifications. But then you have 53 00:02:28,760 --> 00:02:31,240 Speaker 2: to go back and say, what's the market scenario that 54 00:02:31,840 --> 00:02:34,280 Speaker 2: we're trying to meet? How much gas, how often? What 55 00:02:34,400 --> 00:02:37,320 Speaker 2: flow rate? So those inputs are critical to a port solution. 56 00:02:37,480 --> 00:02:38,880 Speaker 1: Have you got a view on that? Because what I 57 00:02:38,880 --> 00:02:40,720 Speaker 1: couldn't get out of the government yesterday and they didn't 58 00:02:40,720 --> 00:02:42,600 Speaker 1: seem to know, was once you get this up and running, 59 00:02:42,639 --> 00:02:45,200 Speaker 1: you presumably want to have it part of the mix permanently, 60 00:02:45,240 --> 00:02:47,120 Speaker 1: as opposed to a shortstop solution. 61 00:02:48,520 --> 00:02:50,960 Speaker 2: Well, I think that those assumptions are critical. I think 62 00:02:50,960 --> 00:02:55,160 Speaker 2: I heard John Carnegie say this morning that everyone wants 63 00:02:55,160 --> 00:02:57,120 Speaker 2: to get a return on this investment. So the question 64 00:02:57,240 --> 00:02:59,360 Speaker 2: is what's the short term? Is this a stop gap 65 00:02:59,400 --> 00:03:03,320 Speaker 2: into solution for dry years, does it become more of 66 00:03:03,360 --> 00:03:05,520 Speaker 2: a feature of the gas market, and does it go 67 00:03:05,600 --> 00:03:07,080 Speaker 2: away once renewable stand up? 68 00:03:07,080 --> 00:03:09,079 Speaker 1: I think those are the key question exactly while I've 69 00:03:09,080 --> 00:03:10,600 Speaker 1: got you. I don't know if it's anywhere. But does 70 00:03:10,639 --> 00:03:14,240 Speaker 1: methd X thing, for example, does that affect you badly? 71 00:03:15,600 --> 00:03:18,080 Speaker 2: Yes, it does. Methanol's the biggest trade through the port, 72 00:03:18,160 --> 00:03:22,000 Speaker 2: so when methinx stops producing, that definitely affects our business. Yeah. 73 00:03:22,040 --> 00:03:23,880 Speaker 1: So I'm looking at your result yesterday. You gave a 74 00:03:23,960 --> 00:03:26,280 Speaker 1: nice dividend to the local council and everything. So all 75 00:03:26,320 --> 00:03:28,560 Speaker 1: of these things are interrelated, and I'm not sure that 76 00:03:28,600 --> 00:03:31,720 Speaker 1: people necessarily understand that. So methodics selling something off to 77 00:03:31,760 --> 00:03:35,360 Speaker 1: somebody else, they're doing well, good on them, but you're not. 78 00:03:36,200 --> 00:03:37,480 Speaker 1: So there's a problem, isn't it. 79 00:03:39,080 --> 00:03:41,680 Speaker 2: Well, yeah, it's a problem for us. We're obviously here 80 00:03:41,760 --> 00:03:44,640 Speaker 2: to serve our customers, so you know, we support whatever 81 00:03:44,680 --> 00:03:47,320 Speaker 2: our customers need to do. But it definitely does hurt 82 00:03:47,360 --> 00:03:49,800 Speaker 2: our business. And you know, we have to think off 83 00:03:49,800 --> 00:03:52,480 Speaker 2: to the medium term around what does our business look like. 84 00:03:52,560 --> 00:03:54,920 Speaker 2: It's going to have to transition as well, So we're 85 00:03:54,920 --> 00:03:58,880 Speaker 2: looking at supporting optional wind renewable project if they go ahead, 86 00:03:58,920 --> 00:03:59,800 Speaker 2: and various. 87 00:03:59,440 --> 00:04:03,440 Speaker 1: Other things that offshore. When they talked about yesterday, how 88 00:04:03,520 --> 00:04:05,000 Speaker 1: real is that if it takes them a year to 89 00:04:05,040 --> 00:04:07,120 Speaker 1: get rid of regulation on L and G. How long 90 00:04:07,200 --> 00:04:08,680 Speaker 1: is it going to take them to build a massive 91 00:04:08,720 --> 00:04:09,960 Speaker 1: windmill out to see. 92 00:04:11,200 --> 00:04:15,000 Speaker 2: Well, they're very large projects, giggle wat scale projects. They 93 00:04:15,040 --> 00:04:17,640 Speaker 2: take a long time. But I think you know, the 94 00:04:17,680 --> 00:04:20,080 Speaker 2: point we keep making making is if New Zealand wants 95 00:04:20,080 --> 00:04:23,240 Speaker 2: to have the option on doing offshore wind, what you 96 00:04:23,440 --> 00:04:26,120 Speaker 2: need is the right port infrastructure. We look around the 97 00:04:26,120 --> 00:04:27,960 Speaker 2: world and we see nothing happens to off sure wind 98 00:04:28,000 --> 00:04:31,120 Speaker 2: without ports. And I think that's up to debate whether 99 00:04:31,200 --> 00:04:34,680 Speaker 2: the pipeline bonds for renewables is going to be sufficient 100 00:04:34,760 --> 00:04:38,360 Speaker 2: or whether offshore will be required, but we certainly want 101 00:04:38,400 --> 00:04:40,359 Speaker 2: to stand ready if it is required. 102 00:04:40,520 --> 00:04:42,839 Speaker 1: Road stuff, Simon appreciate the insight. Simon Cratick, who's the 103 00:04:43,000 --> 00:04:46,479 Speaker 1: the Port Taranaking CEO, endlessly fascinated by this. For more 104 00:04:46,560 --> 00:04:49,640 Speaker 1: from the Mic Asking Breakfast, listen live to news talks 105 00:04:49,640 --> 00:04:52,839 Speaker 1: they'd be from six am weekdays, or follow the podcast 106 00:04:52,880 --> 00:04:54,120 Speaker 1: on iHeartRadio.