JAKARTA, Aug 26 – New Zealand will rush through a law reversing the ban on offshore oil and gas exploration by the end of the year to address a nationwide energy shortage, the ministers of energy and resources said on Monday, reported Sputnik.
“Cabinet has committed to: act with urgency to reverse the ban on offshore oil and gas exploration, with legislation passed by the end of 2024,” they said in a joint statement.
Energy Minister Simeon Brown and Resources Minister Shane Jones said the government of the Pacific island nation would also take urgent action to scrap regulatory barriers on liquefied natural gas (LNG) imports as a stop gap and ease restrictions on electricity lines companies owning generation.
Natural gas production in New Zealand dropped by 12.5 per cent in 2023 and by a further 27.8 per cent for the first three months of 2024, slashing manufacturing output and forcing electricity generators to rely more on coal and diesel fuel.
“New Zealand currently has an energy shortage. The lakes are low, the sun hasn’t been shining, the wind hasn’t been blowing, and we have an inadequate supply of natural gas to meet demand,” Brown said.
The ministers added that they would report back to the cabinet in October with options for mitigating sovereign risk in an LNG facility and domestic gas production.
