New Zealand Energy Corp. Provides Update on Tariki Gas Storage Project

Executive Summary

• NZEC and joint‑venture partner L&M Energy executed a non‑binding MoU with Genesis Energy to collaborate exclusively on technical studies, commercial negotiations and milestones for the Tariki Gas Storage Project.
• Dynamic subsurface modelling and engineering concept studies are on schedule for completion by December 2025, supporting progress toward a final gas‑storage services agreement and eventual FID.
• Operational readiness work at the Tariki‑A site is advancing, with velocity‑string sizing completed (Q2 2025) and temporary compression equipment tendering underway; restart of Tariki‑5A is targeted for Q1 2026.

Key Details

• MoU Execution: NZEC & L&M Energy signed a non‑binding memorandum of understanding with Genesis Energy, committing both parties to exclusive collaboration on the Tariki Gas Storage Project.
• Purpose of MoU: Framework for technical studies, commercial negotiations and project development milestones leading to a definitive gas‑storage services agreement, FID and commercial operation.
• Leadership Quote (Genesis): “Genesis has recently enhanced our relationship with the Tariki Gas Storage Project through the execution of an MoU… clear programme to close out remaining studies and negotiations.” – Malcolm Johns, CEO, Genesis Energy.
• Subsurface Modelling: Dynamic modelling to define storage capacity, cushion‑gas needs, operating pressures, injection/withdrawal rates and long‑term behaviour scheduled for delivery in December 2025.
• Engineering Concept Studies: Ongoing work on surface facilities, compression systems and operational configuration for the gas‑storage facility.
• Personnel Expansion: NZEC is recruiting additional staff to bolster gas‑storage development capabilities.
• Tariki‑A Site Progress:
• Velocity‑string sizing completed by end of Q2 2025.
• Temporary gas‑compression planning (sourcing, tendering) progressed through Q3 2025.
• Anticipated restart of Tariki‑5A operations in Q1 2026 based on current lead times.
• Strategic Impact: The MoU and technical progress position the Tariki Gas Storage Project as a foundational asset for New Zealand’s evolving energy market, potentially delivering significant value to the national energy system.

Notable Quotes

• “Our gas storage project has the potential to provide significant value to the New Zealand energy system, and today’s update represents meaningful progress towards that opportunity.” – Michael Adams, CEO, NZEC.