New Zealand backs gas, but results take time

Government is sending out the right policy signals to support increased domestic gas development, but policy takes time to implement and even longer to yield results

New Zealand’s centre-right government is taking steps to revitalise the gas sector amid a sharp decline in reserves and production that has raised energy security risks. In May, the government announced it would set aside NZ$200m ($121m) in budgetary funds over the next four years to co-invest in the development of new gas fields. This and other policy commitments, such as lifting a ban on oil and gas exploration and doing away with “draconian” decommissioning requirements, put in place by the previous administration, “are sending the right signal that New Zealand is very much back open for business for the natural gas sector”, John Carnegie, CEO of Wellington-based industry association Ener