Latest news with #Pohokura
RNZ News
10-07-2025
- Business
- RNZ News
Liquefied natural gas imports feasible within 3-4 years but would be costly
Pohokura is New Zealand's largest natural gas producer. Photo: Supplied The import of liquefied natural gas (LNG) is feasible within the next three or four years, but would be costly, might be needed only occasionally, and would likely need backing from the government for fast track consent. A report commissioned by the gas company Clarus and the four main power companies - Contact, Meridian, Genesis, and Mercury - has just been released and canvasses various options of scale. LNG has been touted as a back-up for dwindling local gas supplies for the power industry. Clarus chief executive Paul Goodeve said the report was a starting point looking at either a small scale import facility, or larger international standard installation. "This work aims to provide New Zealand with a robust and clear-eyed evaluation of LNG import feasibility, and while both options are technically feasible, they each come with very different costs and benefits." A small scale import option would use smaller vessels, likely needing frequent shipments, but using existing port facilities and infrastructure, at a cost of between $140m-$295m. Goodeve said that had the benefit of lower build costs, faster and flexible development, but the cost of gas would be about 25 percent higher. A conventional LNG import option would be based on using standard-sized ships delivering significant volumes of gas, which may vary between none in some periods and a handful when gas was required for power generation. "The real benefit of these conventional-scale LNG solutions is to improve security of energy supply, providing access to energy when required. In New Zealand's case, this may be in a dry-year when hydro inflows are low, or if domestic gas supply continues to decline," the report said. The report said the government would not need to be directly involved in any LNG operation but could materially assist through backing the consenting of a project. "It has an important role to play at this early stage in defining the project. Without government engagement the schedule to first LNG imports will certainly slip; with government intervention and pro-activity the schedule to LNG can be accelerated." The government has given an indication that it would, if necessary, legislate fast track consent for an LNG terminal. The report mentioned, but did not identify, six possible import locations, although the small scale option singles out Port Taranaki. The fuel import port at Marsden Point has been mentioned in the past, and the other four established port operations - Auckland, Tauranga, Napier and Wellington - are logical sites given they already handle fuel shipments and connect to the North Island gas network. Goodeve said the import of LNG was not a substitute for the development of biofuels, gas exploration, and electrification through renewable energy generation. "Our energy future will be shaped by a mix of energy options and this work ensures the option of LNG is properly understood." He said there was much engineering, commercial and planning work to be done, which meant decisions on whether to proceed would not emerge until next year. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
05-06-2025
- 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.'
