Gas Deal Welcomed But Longer-term Solution Required

A deal announced today to free up natural gas for electricity generation and industrial use is a good outcome in a tricky situation, says Energy Resources Aotearoa.

"It’s pleasing we have natural gas available to keep the lights on and businesses operating," says chief executive John Carnegie.

"Longer term we need to find a better solution though. New Zealand cannot afford to keep cutting back on economic activity just to keep the lights on.

"It’s disappointing for Taranaki and the wider economy that Methanex has to cut back production again.

"However, this is the clear impact of low levels in our hydro lakes and tightened supply of natural gas.

"Both Genesis and Methanex deserve credit for showing leadership and working together constructively on this.

"This situation shows just how important natural gas is to New Zealand’s economy and as a back-up to renewable electricity which will always be intermittent.

"Locally produced natural gas has to play a role because there are just no affordable, reliable or practical alternatives ready yet and won’t be for some time.

"An Energy Accord between Government and industry would be a good step towards tackling this challenge. This would be a joint commitment to work together on lowering emissions and ensuring a sustainable and prosperous energy resources sector."

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