Investigation into natural gas supply welcomed
A new investigation into the security and certainty of New Zealand鈥檚 natural gas supply has been welcomed by the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
鈥淣atural gas is a vital energy source for New Zealand but there is real pressure on our long-term supply. It is a good move by Energy and Resources Minister Dr Megan Woods to request this work from the Gas Industry Company (GIC),鈥� says PEPANZ chief executive John Carnegie.
鈥淣atural gas provides over 20% of New Zealand鈥檚 total energy, powering our key industries and keeping electricity prices down. It also enables renewable electricity by providing an affordable back-up for when demand is high and supply can鈥檛 keep up.
鈥淭here are no clear affordable alternatives ready yet, which means we could end up importing LNG from Australia instead of producing our own local natural gas.
鈥淧EPANZ members are continuing to invest in their existing assets to enhance supply in the short and medium term, but beyond that exploration is required.听
鈥淟ike other forms of energy, natural gas requires ongoing investment to maintain existing supply let alone add new reserves. For this to happen we need the right regulatory and commercial conditions.
鈥淭hese are important issues for the GIC to consider. We look forward to engaging with them and helping the Government ensure we have affordable, reliable and sustainable energy.鈥�
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