Source: BusinessNZ
The BusinessNZ Energy Council (BEC) welcomes new analysis providing greater transparency on the future of New Zealand’s natural gas sector, saying it reinforces the scale and urgency of the supply challenge facing the economy.
BusinessNZ Chief Executive Katherine Rich says a new report commissioned by natural gas industry body Gas Industry Co confirms that New Zealand faces a rapid and unprecedented decline in domestic gas supply.
“BEC has been raising concerns about declining natural gas availability since its Gas Users Forum last year, warning of the risks to businesses and the wider economy if supply continues to fall without credible alternatives.
“Evidence of the strain is already emerging. This latest report notes that high gas prices and supply uncertainty are forcing some users to cut production, raise prices or close operations. These trends were also identified in BEC’s gas users survey last year. Introducing LNG imports from 2028 could materially ease the pressure.”
Rich says a pathway combining local gas with LNG imports would support a smoother transition, giving the energy sector time to build additional renewable generation and network capacity, while allowing consumers and businesses to move away from gas at a manageable pace.
“But even with LNG imports, without viable transition pathways for businesses, reductions on that scale risk economic contraction, job losses and business closures.
“Ensuring New Zealand has a realistic transition pathway is critical. Businesses need time, certainty and workable alternatives if they are to adapt while continuing to invest, produce and employ New Zealanders.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
