Global demand for natural gas a big opportunity for New Zealand
The International Energy Agency’s new forecast that demand for natural gas will increase 45% by 2040 is a major opportunity for New Zealand, says the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
“Global demand for natural gas is only going to grow because it has half the greenhouse emissions of coal. This means that producing and exporting it from New Zealand has the potential to be a win-win outcome for global emissions and for our economy,” says PEPANZ CEO Cameron Madgwick.
“The report clearly highlights the role natural gas can play in reducing emissions by replacing coal in industrial processes and power generation. This reinforces the need for new exploration and development of our natural resources, benefiting New Zealand and the world.
“Liquefied natural gas (LNG) is going to be a major growth industry and this is great news for New Zealand given our potential deposits.
“Much of the demand is likely to come from China, India and other Asian countries. Other nations are eager to meet this demand and by the mid-2020s the United States is projected to become the world’s largest LNG exporter.
“This is an export industry New Zealand can and should be a part of. It could mean more jobs, exports and earnings for the Government through royalties and taxes.
“Taranaki is the only region currently producing but we know other areas have great promise. The recent report by New Zealand Oil and Gas looked at the Barque prospect off the coast of Oamaru and predicted it could generate $32 billion in taxes and royalties for the Government over the life of the field.”
The International Energy Agency also forecasts that global oil demand will continue to grow to 2040. While fuel efficiency and electric vehicles will reduce use by passenger cars, other sectors such as trucks, planes and shipping will continue to drive demand.
The 2017 World Energy Outlook can be found at: http://www.iea.org/weo2017/