Global demand for natural gas a big opportunity for New Zealand
The International Energy Agency鈥檚 new forecast that demand for natural gas will increase 45% by 2040 is a major opportunity for New Zealand, says the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
鈥淕lobal demand for natural gas is only going to grow because it has half the greenhouse emissions of coal. This means that producing and exporting it from New Zealand has the potential to be a win-win outcome for global emissions and for our economy,鈥� says PEPANZ CEO Cameron Madgwick.
鈥淭he report clearly highlights the role natural gas can play in reducing emissions by replacing coal in industrial processes and power generation. This reinforces the need for new exploration and development of our natural resources, benefiting New Zealand and the world.
鈥淟iquefied natural gas (LNG) is going to be a major growth industry and this is great news for New Zealand given our potential deposits.
鈥淢uch of the demand is likely to come from China, India and other Asian countries. Other nations are eager to meet this demand and by the mid-2020s the United States is projected to become the world鈥檚 largest LNG exporter.
鈥淭his is an export industry New Zealand can and should be a part of. It could mean more jobs, exports and earnings for the Government through royalties and taxes.
鈥淭aranaki is the only region currently producing but we know other areas have great promise. The recent report by New Zealand Oil and Gas looked at the Barque prospect off the coast of Oamaru and predicted it could generate $32 billion in taxes and royalties for the Government over the life of the field.鈥�
The International Energy Agency also forecasts that global oil demand will continue to grow to 2040. While fuel efficiency and electric vehicles will reduce use by passenger cars, other sectors such as trucks, planes and shipping will continue to drive demand.