The natural gas industry in New Zealand
In New Zealand, the production, processing and distribution of gas is well established, with natural gas currently providing 30 percent of the country’s primary energy.
The following chart shows how the gas industry operates to deliver natural gas to more than 200,000 customers around the North Island.
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History of natural gas in New Zealand
Natural gas was first discovered in New Zealand, in the Kapuni field, in 1959. This discovery dramatically changed and revitalised the gas industry and in 1969 a transmission system was commissioned. This was gradually expanded over the following 25 years to provide natural gas to all main centres of population throughout the North Island.
The discovery of the Maui gas field in 1970 brought about further rapid changes and growth in the gas industry as the quantities of natural gas available far outweighed the expected demand for gas from the industrial, commercial and residential sectors.
There are now 11 fields either producing oil or capable of being developed. The Maui gas and condensate field is still New Zealand’s largest and Kapuni the second largest.
Gas usage
The major users of natural gas include:
- the petrochemical industry
- electricity generation which accounted for 44 percent of gas usage for the year to September 2003
- direct reticulated users.
Gas distributed for the industrial/commercial and residential sectors represents a very small percentage (around 3%) of the total demand but the highest per GJ value sector of the natural gas market.
Gas production
Latest statistics from the Ministry of Economic Development show that domestic gas production in the year to March 2004 declined by 26 percent with 66 percent of production coming from the Maui field.
Remaining total gas reserves as at 1 January 2004 are reported as 1,462 PJ (gross). This figure is only slightly lower than that for the previous year and reflects upward reviews by operators of recoverable reserves in existing fields. The petroleum industry is also becoming more active in its search for gas.