Latest news with #Pohokura
RNZ News
6 days ago
- Business
- RNZ News
NZ's natural gas supply running out faster than thought
Photo: 123RF The country's natural gas supply is running out faster than previously thought. The Ministry of Business, Innovation and Employment said previous forecasts showed annual gas production falling below 100 petajoules (PJ) by 2029, but revised forecasts indicated that level would be reached by next year. A petajoule or PJ is a unit measurement of energy use commonly used for large-scale energy use, with one petajoule equal to one million billion joules. MBIE also said as of January this year, natural gas reserves were down 27 percent compared to last year - also falling faster than previously estimated. "In 2024, natural gas proven plus probable (2P) reserves reduced from 1300 PJ to 948 PJ," MBIE head of data service delivery," Karlene Tipler said. "The reduction in natural gas reserves is largely driven by field operators reducing their estimates of gas readily extractable in the ground by 234 PJ." MBIE said contingent gas reserves, or gas that existed in the ground but could not be extracted for various reasons such as economic or technical, increased by 184 PJ or 10 percent on last year. "Some of this increase can be attributed to natural gas reserves being downgraded to contingent resources," Tipler said. "A significant contributor to this is Pohokura field, which included a large volume of contingent gas which had previously not been reported." Tipler said some contingent gas may have the potential to be upgraded to 2P if there were changes to economic or technical conditions. Resources Minister Shane Jones said the decline in gas reserves was a "stark reminder" of why the government was seeking greater investment in exploration and production. "New Zealand needs a secure supply of affordable and reliable gas for industry to continue and for Kiwis to keep the lights on," Jones said. "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," he said. As part of Budget 2025, thegGovernment announced $200 million over four years for co-investment in new domestic gas field developments.
Scoop
22-05-2025
- Business
- Scoop
$200m Set Aside For Crown Stake In New Gas Fields
Hon Shane Jones Minister for Resources The coalition Government is taking action on New Zealand's declining natural gas reserves and has set aside a tagged contingency of $200 million over four years for coinvestment in new gas fields, Resources Minister Shane Jones says. The structure of investments is still being worked through, but this signals a willingness, subject to Cabinet consideration, for the Crown to take a commercial stake of up to 10-15 per cent in new gas field developments that feed the domestic market to address sovereign risk. 'Natural gas will continue to be critical in delivering secure and affordable energy for New Zealanders for at least the next 20 years. We are already feeling the pain of constrained supply,' Mr Jones says. 'We are focused on growing the New Zealand economy, creating jobs and increasing prosperity and resilience. The Government is not prepared to sit on the sidelines and watch our industrial and manufacturing dwindle because of energy security concerns. 'Developing a new offshore gas field from exploration to production can carry a billion-dollar price tag and projects of this scale are likely to need offshore investment. We have demonstrated potential for significant gas development and while investors are interested, we need to show their commitment will not be a wasted exercise. 'Talk is cheap but having skin in the game as a cornerstone investor in production demonstrates our own commitment to meeting our future gas needs. We are looking to take a stake in the development of the next Pohokura, Kupe, Mangahewa or Turangi to accelerate the investment needed to support our energy system. 'If we really want to address the current reality that we rely on imported coal, not domestic gas, to get through winter we must be prepared to stand alongside our petroleum sector as a co-investor. I say to my colleagues across the political spectrum, for the sake of energy affordability and security, be pragmatic about the role of natural gas, now and in the coming decades.'
