He welcomed last month’s agreement between the Maui partners - Shell NZ, Todd Energy and OMV - and major users to extend the life of the field (back to the original 2009) and to develop formerly sub-economic reserves.

“Obviously we are no longer dependent on Maui as New Zealand's major LPG producer as we now source much of our LPG from other domestic and international suppliers, but we are hopeful the new arrangements will mean LPG reserves will continue to be available from Maui for several more years," said Poole.

However, it was too early to estimate the precise effect the new contract arrangements would have on Maui LPG production volumes.

There was also good potential for additional LPG production from soon-to-be-developed fields such as Kupe, which has first gas scheduled by mid-2007. Enhancements to the Waihapa and Kapuni fields were also currently underway and that would further strengthen domestic supplies.

"And, with the government's recent announcement about incentives for gas exploration, there is even more reason to expect that new sources of LPG will be discovered.”

Poole said the New Zealand LPG market had grown 50% in the last five years as demand had skyrocketed from household and small commercial users. Investment by major LPG wholesalers in reticulation projects had also fuelled growth.

During the 2003 winter, the industry imported about 12,000 tonnes of LPG from Australia and Poole said similar amounts were expected to be imported this winter, depending on demand.