GAS

NZ running low on gas: NZ energy minister

BRING on Pohokura, Kupe and any other New Zealand gas as quickly as possible this country's gas ...

NZ running low on gas: NZ energy minister

Energy minister Trevor Mallard today released the latest Energy Data File, covering the year to September 2004. The report shows the country’s total energy supply, including petroleum imports, remained relatively unchanged.

Total primary energy supply, including the importation of oil and oil products, remained relatively static, at about 763 Petajoules. Total domestic energy consumption increased by 2.2% to 508 Petajoules, due to continued increase in domestic transport energy use.

But the disturbing news for the oil and gas sector is that local gas production dropped by 22% to about 150 PJ, with only 64% coming from the offshore Taranaki Maui field, as opposed to about 80% earlier this decade. Only a few years ago, total gas consumption was 230-240 PJ per annum.

The Pohokura gas field, only a quarter the size of Maui, is coming onstream in mid-2006. Kupe, which is even smaller, is due to begin production in mid-2007.

About 31% of the domestic gas consumed in the latest September year was used for petrochemical production (with Methanex NZ now consuming only 20 PJ instead the previous 90PJ for methanol production). Forty-one per cent was used for electricity generation and 28% for industrial, commercial and domestic purposes.

Gas used for generation (including co-generation) for the September year was 60 PJ, about 33% lower than in the previous year due to reduced Maui gas quantities and rationalisation of the use of available gas by generators.

Total electricity generation was estimated at 41,500 GWh, 4.2% higher than the previous 12 months. Significantly higher hydro and coal generation was offset by lower gas-based generation for the entire period.

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