New Zealand's energy security in peril
MBIE’s latest petroleum data shows the shocking effect of damaged investment signals, with gas reserves dropping below ten years of remaining use for the first time. Energy Resources Aotearoa is warning that without change, New Zealand’s energy security will be threatened.
Energy Resources Aotearoa Chief Executive John Carnegie says:
"Almost ten percent of the electricity we use to heat our homes and keep businesses’ lights on comes from New Zealand’s domestically produced natural gas. It is a vital component in our energy mix and picks up the slack when weather-dependent renewables cannot get there on their own."
"Natural gas is not just used to generate electricity. New Zealand’s industry is powered by affordable natural gas, including industries such as dairy, methanol and steel."
Carnegie says that greater investment confidence is needed immediately, as New Zealand now faces an energy shortfall.
"What affordable alternative renewable energy source at scale can possibly fill the gap now forecast to emerge in less than 8 years’ time? Alarm bells should be ringing.
"Without enough domestic supply of energy there will be no further electrification of transport. Large manufacturers will close, and there will be no energy source capable of firming up renewables in the depths of winter other than high-emissions coal. That will be our reality if we continue down this track.
"New Zealand needs to restore investment confidence in the production of natural gas. Statements like those of the Australian Labor Prime Minister that gas has a key role to play in guaranteeing the country’s energy security would be a good start."