Crown Minerals Amendment Bill a Step in the Right Direction

Energy Resources Aotearoa welcomes the passage of the Crown Minerals Amendment Bill into law, describing it as an important contribution to restoring investment confidence and strengthening New Zealand’s energy security.

The Bill reverses the 2018 ban on new petroleum permits, restores the promotional purpose of the Act, provides greater flexibility in how petroleum permits are allocated, and recalibrates the decommissioning rules while retaining suitable safeguards.

Energy Resources Aotearoa Chief Executive John Carnegie says the legislation goes some way towards rebuilding the confidence to invest in New Zealand's petroleum sector, which is essential for backing up the country’s renewable electricity system, especially during periods of low hydro inflows and peak winter demand.

"This Bill reverses policy that has done real damage to New Zealand’s long-term energy security, our economic resilience, and our reputation as a place to invest.

Energy prices tell this story. Without a secure domestic gas supply, the alternative is greater reliance on emissions-intensive imports - most likely from coal.

To meet our growing energy needs, we must make better use of the resources beneath our feet to enhance economic, social, and environmental resilience."

Carnegie acknowledged the Government’s willingness to engage with the sector throughout these changes.

"We appreciate the time Minister Jones and officials have taken to listen to industry concerns and understand the on-the-ground realities. That engagement is reflected in final legislation, which is more workable for our sector."

Carnegie says the changes are a pragmatic step forward, but more will be needed to achieve the Government’s objectives of restoring investor confidence and revitalising the sector.

"Securing New Zealand’s energy future will require a system firing on all cylinders - which means backing technologies like carbon capture and ensuring all energy options remain on the table, including hydrogen, green gas, biomass, and large-scale renewable generation.

This new Act is an important part of the puzzle, but to attract the kind of long-term investment New Zealand needs, there must be durable, predictable policy settings that survive beyond election cycles."

Carnegie says energy policy shouldn’t be treated as a political football.

"The stakes are too high, and it’s ordinary Kiwis who end up paying the price when supply is unnecessarily constrained or uncertain.

Today’s reform is a big step in the right direction. Now we need to build on it with consistent policy and a clear long-term plan for how domestic natural gas will help deliver affordable, secure energy and economic growth."