New Zealand to end ban on offshore oil exploration

New Zealand

WELLINGTON, August 26, 2024 – Government officials in New Zealand have pledged to pass laws by the end of the year reversing the country’s six-year ban on offshore oil and gas exploration, Reuters reported on Monday.

The government also plans to remove barriers to importing LNG and legislate consent for an LNG import terminal.

Hydrocarbons E&P will continue in the North Island’s onshore Taranaki region.

The move follows a weeks-long period of energy shortages that drove prices to levels described by the country’s prime minister as among the highest seen in developed nations.

Prime Minister Christopher Luxon – head of the centre-right National Party, which defeated the centre-left Labour Party in October’s elections – urged opposition members to support the forthcoming bill.

The report did not specify whether the government is dependent on opposition support to pass the new legislation.

New Zealand’s energy minister was quoted as saying the country’s natural gas production had dropped by 12.5% in 2023, followed by an additional 27.8% in January-March 2024.