Investigation into natural gas supply welcomed

A new investigation into the security and certainty of New Zealand’s natural gas supply has been welcomed by the Petroleum Exploration and Production Association of New Zealand (PEPANZ).

“Natural gas is a vital energy source for New Zealand but there is real pressure on our long-term supply. It is a good move by Energy and Resources Minister Dr Megan Woods to request this work from the Gas Industry Company (GIC),” says PEPANZ chief executive John Carnegie.

“Natural gas provides over 20% of New Zealand’s total energy, powering our key industries and keeping electricity prices down. It also enables renewable electricity by providing an affordable back-up for when demand is high and supply can’t keep up.

“There are no clear affordable alternatives ready yet, which means we could end up importing LNG from Australia instead of producing our own local natural gas.

“PEPANZ members are continuing to invest in their existing assets to enhance supply in the short and medium term, but beyond that exploration is required. 

“Like other forms of energy, natural gas requires ongoing investment to maintain existing supply let alone add new reserves. For this to happen we need the right regulatory and commercial conditions.

“These are important issues for the GIC to consider. We look forward to engaging with them and helping the Government ensure we have affordable, reliable and sustainable energy.”

Further information on the GIC’s investigation is available here.