Latest news with #CrownMineralsAmendmentBill
Scoop
2 days ago
- Business
- Scoop
Past Policy Choices Coming Home To Roost
Press Release – Energy Resources Aotearoa There has been a 27 per cent year-on-year reduction in natural gas reserves, dropping to 948 petajoules from 1,300 in 2024, which was 20 per cent down on the previous year. Production is now forecast below 100 PJ by 2026, rather than 2029, as previously … For yet another year, the Ministry of Business Innovation and Employment (MBIE) data published today shows that estimates for New Zealand's gas reserves are rapidly declining. There has been a 27 per cent year-on-year reduction in natural gas reserves, dropping to 948 petajoules from 1,300 in 2024, which was 20 per cent down on the previous year. Production is now forecast below 100 PJ by 2026, rather than 2029, as previously forecast. Energy Resources Aotearoa Chief Executive John Carnegie says the $200 million Crown co-investment in new domestic gas projects, the removal of the 2018 exploration ban, and changes proposed through the Crown Minerals Amendment Bill are all great signs that the Government is working hard to turn the corner on the deindustrialisation of the New Zealand economy. 'We acknowledge the Government is moving to support the strong potential of our domestic gas supply. But only time will tell if this will be enough.' Carnegie says the ongoing challenges with gas supply underscore the urgent need for proactive measures to secure energy stability and support New Zealand's economic resilience. 'We know there are still prospective fields out there – now we need to see the right conditions continue so that we can unlock the supply. Kiwi businesses are doing it tough as gas supply becomes further constrained. We desperately need more natural gas in the market to ensure electricity is available to keep the lights on and our export economy thriving.' Currently, we're witnessing the consequences of a shrinking domestic gas supply: higher prices, the use of imported coal, and uncertainty for industrial users, Carnegie says. 'Natural gas plays a critical role in supporting renewables, powering industry, and keeping energy affordable and reliable. Gas production projects underpin everything from electricity to industrial manufacturing. If we don't continue to work hard on securing more domestic gas for New Zealand, we risk higher prices, more imported coal use, and further instability.' If New Zealand can get this right, the benefits are enormous: jobs, royalties, export earnings, and the confidence of regional businesses to expand, knowing they have secure and affordable energy for the future.
Scoop
2 days ago
- Business
- Scoop
Past Policy Choices Coming Home To Roost
For yet another year, the Ministry of Business Innovation and Employment (MBIE) data published today shows that estimates for New Zealand's gas reserves are rapidly declining. There has been a 27 per cent year-on-year reduction in natural gas reserves, dropping to 948 petajoules from 1,300 in 2024, which was 20 per cent down on the previous year. Production is now forecast below 100 PJ by 2026, rather than 2029, as previously forecast. Energy Resources Aotearoa Chief Executive John Carnegie says the $200 million Crown co-investment in new domestic gas projects, the removal of the 2018 exploration ban, and changes proposed through the Crown Minerals Amendment Bill are all great signs that the Government is working hard to turn the corner on the deindustrialisation of the New Zealand economy. "We acknowledge the Government is moving to support the strong potential of our domestic gas supply. But only time will tell if this will be enough." Carnegie says the ongoing challenges with gas supply underscore the urgent need for proactive measures to secure energy stability and support New Zealand's economic resilience. "We know there are still prospective fields out there - now we need to see the right conditions continue so that we can unlock the supply. Kiwi businesses are doing it tough as gas supply becomes further constrained. We desperately need more natural gas in the market to ensure electricity is available to keep the lights on and our export economy thriving." Currently, we're witnessing the consequences of a shrinking domestic gas supply: higher prices, the use of imported coal, and uncertainty for industrial users, Carnegie says. "Natural gas plays a critical role in supporting renewables, powering industry, and keeping energy affordable and reliable. Gas production projects underpin everything from electricity to industrial manufacturing. If we don't continue to work hard on securing more domestic gas for New Zealand, we risk higher prices, more imported coal use, and further instability." If New Zealand can get this right, the benefits are enormous: jobs, royalties, export earnings, and the confidence of regional businesses to expand, knowing they have secure and affordable energy for the future.
Scoop
2 days ago
- Business
- Scoop
Gas Data Proves Government Correct To Act Now
Hon Shane Jones Minister for Resources New figures released today showing a decline in New Zealand's gas reserves is a stark reminder why the Government is taking decisive action to bolster the industry and seek more investment in exploration and production, Resources Minister Shane Jones says. 'New Zealand needs a secure supply of affordable and reliable gas – for industry to continue and for Kiwis to keep the lights on. A 27 percent year on year decline in our natural gas reserves is further proof that the Coalition Government has made the right decisions in overturning the oil and gas ban, and is willing to become a cornerstone investor in gas production,' Mr Jones says. 'We simply cannot allow the de-industrialisation of New Zealand to continue. Our manufacturing sector, particularly in the regions, which rely on gas are at the mercy of the market. Rising gas prices are putting increasing pressure on manufacturers and are harming the competitiveness of our businesses, risking their viability. 'As an island nation we should be taking full advantage of our indigenous gas reserves to power our homes and businesses. The idea that we could transition to 100 percent renewable energy without the back-up of any kind of thermal energy is as naïve as it is unattainable. 'That's why the Government has made some bold decisions about how we can arrest the impending degradation of our energy system. It is not too late to turn around our fortunes in this area. 'The Government has committed, through Budget 2025, $200 million over four years for Crown co-investment in new domestic gas field developments. This funding will allow the Government to take a commercial stake of up to 15 percent in new gas projects that feed the domestic market, helping to reduce sovereign risk and attract offshore investment. 'As well as removing the exploration ban, the Crown Minerals Amendment Bill which comes back before the House soon, better balances the regulatory burden and risk of decommissioning and gives the regulator more flexibility in how exploration permits are issued, giving the sector confidence to get to work.' Other action the Government has taken includes the Investment Boost policy announced in the Budget.
