New Zealand's natural gas reserves have fallen sharply over the past year, and the latest figures show why the Government is working hard to secure the country's energy supply, Energy Minister Simeon Brown says.
"MBIE's annual Petroleum Reserves report shows gas reserves have dropped 23 per cent in the past year, down to 731 petajoules," Mr Brown says.
"About half of that fall is gas used during 2025. The other half is gas that operators have realised was previously over estimated, with the Pohokura field being the biggest reason for these downgrades.
"The report also shows production is falling faster than expected. The Maui field, one of New Zealand's biggest, is set to stop producing this year. In total, eight gas fields are expected to close between now and 2036."
Mr Brown says falling gas supply is a real problem for Kiwi households and businesses.
"Gas is used to generate the electricity that keeps the lights on when the sun's not shining, the wind's not blowing, and the lakes are low. Without enough gas to back up renewable generation, power bills go up, factories shut down, and Kiwis lose their jobs.
"That's exactly what happened in 2024, when New Zealand had a dry year. Wholesale power prices soared above $800 per megawatt hour, the New Zealand Aluminium Smelter cut production, some businesses closed for good and Kiwis lost their jobs.
"Following the Labour Government's ban on offshore oil and gas exploration, higher energy prices have had a significant impact on the New Zealand economy, leading to a $5.2 billion loss in GDP in 2025 alone. Kiwis are paying the price in higher power bills, lost jobs, and a weaker economy.
"When gas runs short, firms turn to coal. Coal produces around twice the carbon emissions of gas for the same amount of energy, so a shortage of gas is bad for our economy and bad for our climate."
The Government is taking several actions to keep the lights on and ensure affordable power bills:
- Reversed Labour's ban on oil and gas exploration to bring investment back, get more gas out of the ground, and put downward pressure on power bills.
- Backing new domestic gas with a $200 million Gas Security Fund, partnering with industry to get more gas to market sooner.
- Undertaking a procurement process for an LNG import facility, as part of our focus on keeping the lights on and ensuring power bills are affordable when dry years hit.
- Enabling Carbon Capture, Utilisation and Storage, a technology already used overseas that makes it easier and cheaper to keep producing domestic gas.
"Every other comparable country in the OECD has access to secure, diversified gas supplies. New Zealand is the outlier, and we need to secure affordable energy.
"This Government's focus is on delivering secure, affordable energy for households and businesses. That's why we are fixing the basics and building the future by rebuilding New Zealand's energy security after the Labour Government's neglect.
"Kiwis deserve power they can afford, an economy backed by reliable energy, and jobs protected from avoidable shocks."
