Gas production forecast to fall below demand

Natural gas production in New Zealand is expected to drop below demand, according to the latest oil and gas reserves data.

For at least the next three years, data shows New Zealand’s natural gas reserves will produce 10 petajoules less than recent demand levels.

This year’s revisions are split fairly evenly between downgrades to contingent resources, where operators believe the gas is there, but it’s too hard to extract (100 PJ), and revisions to existing figures, where operators believe there is less total gas than previously thought (88 PJ).

Of all the gas used in New Zealand in 2023, the majority was used by the industrial sector, either being burned for heat (35% of all use) or being used as a feedstock (26%) in factories. Around 29% of gas use was for electricity generation, and the remaining 10% of use represented use by households, schools, hospitals, and other businesses.