New Zealand announced that it would pass laws by the end of 2024 to reverse a ban on offshore oil and gas exploration. This reversal comes as the country faces energy shortages.
The country also said it would urgently take action to remove “regulatory hurdles to import liquefied natural gas (LNG)” to meet its energy demand.
The proposed legislation would lift the 2018 ban on exploration beyond onshore Taranaki, a region known for its energy resources on New Zealand’s North Island.
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According to a Reuters report, this move is part of the right-leaning government’s strategy to attract investment into the nation’s oil and gas industry.
Energy Minister Simeon Brown reported that natural gas production had declined by 12.5% in 2023 and dropped an additional 27.8% in the first quarter of 2024.
This reduction led to a nationwide energy shortage, prompting generators to rely more on coal and diesel to supply the grid. According to the government, renewable sources such as hydro, solar, and wind weren’t able to compensate for the deficit.
Apart from lifting the ban, the government will also make it more convenient and cheap to “consent, build and maintain renewable power generation, and electricity distribution and transmission.”