Gas
Gas Production
There are sixteen fields and wells that produce gas in New Zealand, all in the Taranaki region. Production is currently dominated by the Pohokura field, which started production in 2006, and the Maui field. Shell and Todd Energy-owned subsidiaries control the majority of New Zealand production.
The giant Maui gas field was discovered in 1969, and initially offered more gas than New Zealand needed for domestic use. In the early 1980s, the government sponsored a number of large construction projects to promote economic development in the face of sharply rising world oil prices. Some of these ‘Think Big’ projects were dependant on Maui gas, including an ammonia-urea plant, the Motunui synthetic petrol plant, and the Waitara methanol plant. In addition, other types of gas demand, particularly power generation, continued to grow throughout the 1990s and into this decade.
A series of market reforms were implemented in the gas industry in the 1990s with the gas industry moving to market-based pricing, and the government reducing its previously heavy commercial involvement in the market.
Chart 1: Gross Gas Production by Field
Gas Consumption
Since 2001, between 40% and 60% of all gas used in New Zealand has been used in the production of electricity. The petrochemical and industrial sectors also consume a large amount of natural gas, with a small amount used by the commercial and residential sectors.
If locally produced gas becomes scarce one option will be to move to importing liquefied natural gas (LNG). At least one company is considering this option. LNG import proposals are likely to be contentious because of the impact they would have on electricity prices, energy security, domestic exploration, and the balance of payments.
Chart 2: Gas Consumption by Sector
Projected Gas Production
The figure below projects a delivery profile of New Zealand's current known estimated gas reserves. Production from the Maui field has declined but has been replaced with production from the Pohukura and Turangi fields. A further increase in supply is expected in 2009 as the Kupe field begins production. The graph also contains a projection of gas demand. Demand is expected to grow over the next few years as Methanex increases Methanol production at Motunui.
Maui is predicted to reach the end of its economic life by the end of the next decade, with the supply of gas expected to tighten unless there are major new discoveries.
Gas Deliverable (Gross PJ)
Data Tables for Gas
The following tables show the data collected for each quarter in relation to gas.
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