Investor confidence key to keep natural gas flowing
Energy Resources Aotearoa says MBIE’s latest release of petroleum reserves data shows the importance of investor confidence in ensuring a continual supply of natural gas in New Zealand.
The information release shows that Proven plus Probable (2P) reserves of petroleum have decreased by 5.1% in the past year.
Energy Resources Aotearoa Chief Executive John Carnegie says:
"Natural gas provides the energy to power New Zealand’s transition to a low-emissions economy. To ensure that we have an orderly and affordable transition, it is vital for our social and economic wellbeing that the sector has the confidence to invest in natural gas production."
Carnegie says that operators’ ongoing investment in production is welcome, as a reliable supply of natural gas helps keep the lights on, showers hot, and steaks cooked when renewables cannot meet demand.
"We are encouraged by OMV’s ongoing investment in the Maui field and planned appraisal drilling of Toutouwai. Todd has undertaken further drilling at Kapuni, and Beach Energy has also signalled they are planning to further develop the Kupe field."
"As recent weeks have shown, there can be cold winter days when the wind stops blowing and the lakes cannot meet New Zealand’s electricity demand alone. Natural gas plays a key role in enabling the use of renewables by being able to contribute to electricity generation during times of peak demand."