Analysis
178. The New Zealand gas market is in transition from a heavy reliance on one gas field and producer to a situation where gas comes from an increasing number of fields and producers. As a result, substantial new market arrangements — instruments and institutions — are being designed, developed and put in place.[43]
Consumption
179. 54.5 per cent of New Zealand’s natural gas produced during 2008 was used for electricity generation (as depicted in the following figure). Total observed gas consumption decreased by approximately 8.0 per cent in 2008[44]. This was due to a drop in the demand for gas to be used for electricity generation and a drop in consumer energy demand.
- Gas Consumption by Sector for 2008
- Source: Ministry of Economic Development: New Zealand Energy Data File 2008[45]
Projected gas production and demand
180. The graph that follows below projects a delivery profile of New Zealand's estimated gas reserves as at 2007. Production from the Maui field has declined but has been partially replaced with production from alternative fields. Because of Maui's projected exhaustion, the government has put in place some exploration subsidies.
- Projected Gas Production and Gas Demand[45]
- Source: Ministry of Economic Development
Notes
- [43]From The New Zealand Gas Industry in 2006: Review of its State and Performance Report by the Allen Consulting Group, p.v, November 2006.
- [44]According to the Ministry of Economic Development: New Zealand Energy Data File 2008: Gas consumption decreased by approximately 167 Picojoule (PJ) to almost 154 PJ in 2008.
- [45]This projected gas supply/demand outlook fails to take into account the 2008 reserve downgrades. It is likely that this gap has widened.
