Gas supply and demand information
Natural gas underpins electricity supply security, supports a substantial petrochemical manufacturing sector and is used by many export industries. In addition, many households and businesses use gas for heating and cooking.
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Gas supply
In recent years, the outlook for domestic gas supply has become increasingly challenging, as gas production remains below the sector’s own forecasts and reserves continue to decline despite significant investment.
Exploration, production and processing
Natural gas in New Zealand is sourced from the Taranaki region, from onshore and offshore wells that also produce oil. Modern gas exploration began after the onshore Kapuni and offshore Maui gas fields were discovered in 1959 and 1969, respectively, and brought on stream from 1970.
New Zealand’s oil, natural gas and LPG (liquid petroleum gas) reserves statistics are available in the Petroleum reserves data, and further information on gas exploration is available on the New Zealand Petroleum & Minerals website.
Petroleum in New Zealand(external link) — New Zealand Petroleum & Minerals
There are several processing stations in the Taranaki region that process raw gas, including extracting LPG in some cases, before injection into the high-pressure transmission network.
MBIE publishes monthly and quarterly data on gas production. GIC also publishes information on daily gas production by major fields.
Gas production data(external link) — Gas Industry Company Limited
Transmission and distribution
Gas is transmitted by two open access, high pressure transmission pipelines to virtually all regions of the North Island, and then delivered to the majority of consumers through lower pressure local distribution networks.
New Zealand's gas transmission network is owned and operated by First Gas Limited. The network includes the Firstgas high pressure pipelines and the Maui high pressure pipeline.
- The Firstgas transmission pipelines cover 2500km and extend from the New Plymouth area to Whangarei in the north, Taupo centrally, to Gisborne and Napier in the east, and to Wellington in the south.
- First Gas Limited transmits gas directly from the Oaonui Production Station to Huntly Power Station through the Maui Pipeline. This pipeline began transmitting gas in 1979 and currently transports most of the natural gas produced in New Zealand.
First Gas Limited also operates more than 4800km of gas distribution networks across the North Island.
Firstgas website(external link)
Open access distribution networks are owned by Firstgas, Vector, Powerco, and GasNet, while Nova Energy owns a number of small private pipelines.
Gas demand
Gas consumption comes from the following main sectors:
- electricity generation, including cogeneration
- the industrial sector, such as dairy
- as a feedstock (i.e., non-energy use) in the petrochemical sector
- the residential sector
- the commercial sector, including transport.
Gas demand varies from year to year, reflecting primarily demand from the two largest users – petrochemical producers and electricity generators. Gas demand for electricity generation, in particular, fluctuates according to hydro water levels and the availability of other renewable forms of generation, such as wind.
While we expect gas demand to decline over time as more users electrify, gas remains critical for supporting growth in intermittent renewable generation, meeting short term peaks in electricity demand and serving parts of the energy system that cannot switch to alternatives.
MBIE publishes quarterly gas statistics, which includes data on gas consumption. GIC also publishes information on daily gas consumption by industrial users.
Gas consumption data(external link) — Gas Industry Company Limited
Gas prices
Gas prices are impacted by supply and demand. GIC publishes regular Supply and Demand studies, which model current and future gas supply and demand scenarios and provide insights about possible pathways for the sector.
Gas supply and demand(external link) — Gas Industry Company Limited
MBIE publishes quarterly energy pricing data, which includes information on natural gas prices. GIC also publishes information about New Zealand gas prices.
Gas pricing(external link) — Gas Industry Company Limited
Gas information disclosure requirements
Owners of open access gas pipelines are required to publicly disclose certain prescribed financial and other information under Information Disclosure Determinations introduced in 2012 and administered by the Commerce Commission.
Information disclosure requirements for gas pipelines(external link) – Commerce Commission
Parliament passed an Act in 2021 to improve information disclosure and increase the maximum financial penalty for breaching gas regulations.
The Gas (Information Disclosure and Penalties) Amendment Act 2021 (the Amendment Act) was a response to issues identified following multiple outages at the Pohokura gas field in 2018 that restricted the supply of gas, led to high prices on the gas spot market, and elevated wholesale electricity prices.
The Amendment Act also increased the maximum fine that can be imposed by the Gas Rulings Panel for breaches of gas governance regulations from $20,000 to $200,000.
These amendments were informed by feedback received on the ‘Options for amending the Gas Act 1992’ discussion document that went out for public consultation in 2019. This discussion document also sought views on possible changes to the Gas Act 1992 to ensure that it is not a barrier to developing hydrogen and biogas projects.
Gas (Information Disclosure and Penalties) Amendment Bill(external link) — New Zealand Parliament
Gas Act 1992: Information Disclosure and Penalties - Regulatory Impact Summary [PDF 187KB]
Further information on gas information disclosure(external link) — Gas Industry Company Limited