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The future of gas burns brightly for NZ

Gas has a bright future in New Zealand. There is plenty of natural gas available for Kiwi homes and businesses, with around 15 producing gas fields and 31 active exploration permits across New Zealand.

There are around 425,000 gas users in New Zealand, and over 280,000 of these are natural gas users. Natural gas remains reliable, convenient, efficient, and affordable and we hear from many customers who say that once they’ve had gas, they’ll never go back.

New Zealand can be proud to say around 80% of our electricity is generated by renewable resources. We are strides ahead of many other countries who are seeing natural gas as their destination fuel as they transition away from heavy coal use to cleaner natural gas.

The Gas Hub fully supports renewable energy, and we believe that natural gas makes a great partner to cover the shortfalls. With around one-third of electricity being generated by natural gas when there is not enough renewables to meet demand, gas has got our back! 

It is really positive to see the development of lower carbon and zero emission gas using new and exciting transformational technologies like hydrogen, biogas and carbon capture and storage (CCS). Gas energy is only just getting started! 

Every home using gas for hot water, heating or cooking is helping NZ

At times there is not enough renewable electricity to power everybody’s homes. Like in winter when there is high demand for power on cold days. When this happens, natural gas is used as a back up to generate extra electricity for the grid. This is called peak time electricity, needed to keep the water hot and the heaters on. When there are renewable shortfalls, around one-third of natural gas produced is used to generate electricity. 

 

Homes using natural gas directly for hot water, heating or cooking won't need those appliances powered with peak time electricity.

 

This is more efficient. There are fewer steps required to power your home. Fewer steps means fewer emissions produced. Fewer emissions is better for New Zealand.

Gas is not running out

Gas is not running out any time soon. There’s plenty available for Kiwi homes and businesses for decades to come with around 15 producing fields and 31 active oil and gas exploration permits covering an area nearly the size of the North Island!

 

Kiwi homes connected to gas consume around 3.6% of gas produced and collectively contribute to less than 1% of New Zealand's total greenhouse gas emissions. The Government have indicated that stopping Kiwi homes from using gas is not a current priority. There are much bigger sectors to focus on as part of New Zealand’s decarbonisation journey, like transitioning to electric vehicles.

 

There are also options to find more gas in the future. Existing exploration permit rights are fully protected and there is no ban for new on-shore permits.

Natural gas remains an excellent energy choice for Kiwi homes

The living is easy in a natural gas home. Providing comfort and convenience with fast, powerful hot water, home heating and cooking, natural gas is reliable, flowing 24/7.

 

With increasing demand for electricity from things like multiple devices at home and electric vehicles, homeowners can rest easy, knowing that every appliance powered by natural gas is helping New Zealand out by easing pressure on renewable energy supply.

 

Just like many homes have a mix of electricity and gas, New Zealand’s energy mix has a balance of supply sources. It just makes sense.

 

Smart appliance technology, high efficiency and low per kilowatt prices mean that households are on to a good thing by going with gas.  Plus with The Gas Hub’s free connection offer the benefits stack up even more.

Still needing more info?

You can read our future of gas FAQs for more information about natural gas, renewable energy and decarbonising New Zealand.

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