First exploration approval advances gas rebuild
Energy Resources Aotearoa says today’s approval of an exploration permit for EnZed Energy off South Taranaki shows the Government’s new petroleum regime and permitting processes are delivering for New Zealanders, but the pace needs to increase for other applications.
Chief Executive John Carnegie says the approval is a first step under the new Crown Minerals regime towards rebuilding New Zealand's gas supply and allowing domestic natural gas reserves to replenish.
"Gas keeps the lights on, firms our renewable grid and supports thousands of high-value jobs. Without new supply, New Zealand faces higher prices for homes and businesses, greater reliance on coal, and reduced energy security.
Freezing mornings driving increased electricity demand in the past few days - reaching the all-time peak demand record of 7141 MW - shows the vital role of thermal fuels in securing our system"
Carnegie says ENZed is led by experienced sector figures with the technical and commercial expertise needed to assess the area’s potential.
"It’s encouraging to see capable investors prepared to back New Zealand’s future gas potential," Carnegie says.
Petroleum permit processing times need to continue to improve, Carnegie says.
"Government ambition needs to be matched with speed of action, or they’ll hold the sector back at a time where new gas supply is desperately needed."
Carnegie says delays affect not only the pipeline of new market entrants but also their ability to raise finance and progress commercial agreements.
"The 2018 exploration ban caused lasting damage - the unintended impacts of which are being felt acutely by all New Zealanders.
This approval sends a clear signal that New Zealand’s resources are worth investing in and companies are prepared to commit capital to finding and developing them.
It’s an important start, but rebuilding the sector will take more applications and sustained exploration to unlock domestic gas needed for affordable, reliable energy and a stronger economy."