The latest Business New Zealand-BNZ survey paints a subdued picture.

Todd Energy is to build a $100 million gas-fired power station alongside its McKee oil and gas production station near Waitara in Taranaki.

Todd managing director Richard Tweedie says the new station will be capable of generating up to 100 megawatts (MW) of electricity, enough to power up to 100,000 homes.

Todd Energy is building on an expanding retail customer base with consent for a $65 million LPG plant to supply 45 kilo gas bottles for household use.

Planned to produce 27,000 tonnes of LPG a year, the plant will be built at its McKee Production Station site in Taranaki, producing LPG (as a natural by-product of gas extraction) sourced from its Mangahewa and Pokohura fields.

It plans to deliver LPG through its 50,000 customer-strong retail company, Nova Energy, across the North and South Islands.