Gas shortage warning a sign of things to come

The National Party says a warning of potential gas shortages over the next week are a sign of things to come.

“This Government has consistently refused to identify gas exploration as a priority when New Zealand’s supply is precariously poised,” says National’s Energy spokesman Gerry Brownlee.

Maui Development Limited announced earlier this month that it was shutting down the Maui B platform for maintenance this week and it also warned of potential gas shortages as a result.

“And you can be sure this unseasonal cold snap’s putting the national gas network under real pressure at the moment,” says Mr Brownlee.

“We’re disappointed the recent gas review didn’t cover the crucial area of exploration, when the industry’s own figures show there’ll be a big gap between demand and supply by 2015,” says Mr Brownlee.

Shell Oil says by 2015 the country will need about 180 peta joules of gas each year when New Zealand will only be producing around 120 peta joules.

“The industry’s still projecting those big gas shortages even after adding in supplies from 10 unproven fields.

“And of course we as consumers will be paying through the nose - the gas price is expected to more than triple,” says Mr Brownlee.

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