While both GANZ chairman Trevor Goodwin and Rockgas general manager Owen Poole applauded the government package to stimulate gas exploration, they differed on the best way to increase overall gas usage.

“While securing the nation’s electricity supply is important, from an environmental and consumer choice perspective, we should also be focusing on increasing New Zealand’s energy efficiency and the use of natural gas as a primary source of fuel,” Goodwin said.

The real challenge lay in extending gas distribution networks to more and more domestic (currently only 10% of households can get gas) and small commercial users.

Poole, though, said the government would be better to encourage the direct use of liquefied petroleum gas (LPG) which required no subsidies. “Encouraging greater use of LPG will generate significant economic, energy security and environmental benefits without unnecessary investment in costly infrastructure.”

Both agreed that providing more gas to more homes would reduce the demand for electricity and consequently the pressure on this country’s nation’s electricity supply.

While Goodwin called for the government “to extend its package to include incentives to encourage further investment in natural gas distribution”, Poole believed “incentivising greater use of LPG offers significant positive outcomes for consumers and the country for very little additional cost.”