About New Zealand

Over recent years, New Zealand has seen domestic gas reserves decline and electricity demand continues to rise. Now, policymakers, industry players, and investors are reassessing the role of gas in strengthening New Zealand’s energy security and economic stability.

New Zealand’s domestic gas supply has fallen sharply in recent years, with production forecasts revised down as mature fields decline and new developments have failed to replace reserves at pace.

At the same time:

• Electricity demand is rising, driven by population growth, electrification and industrial consumption.
• The power system is highly dependent on renewables, particularly hydropower, which can be vulnerable during dry periods.
• Coal imports have increased to support generation during supply gaps.
• The country is actively preparing to import LNG from international markets to manage seasonal and structural energy shortfalls.

Gas plays a critical role in New Zealand’s energy mix. It supports grid stability, underpins industrial activity, and reduces reliance on higher-emission coal during periods of low hydropower generation. As domestic supply tightens, the importance of secure, locally produced gas has become increasingly clear.

Recognising the strategic importance of gas, the New Zealand Government has taken decisive steps to encourage renewed upstream investment and restore confidence in the sector.

Repeal of the Exploration Ban

In July 2025, the government lifted the previous oil and gas exploration ban, reopening the country to new exploration permits and signalling a clear shift toward including gas in its long-term energy security strategy.

Crown Co-Investment Fund

The NZ$200 million co-investment Gas Security Fund was established in 2025 to boost domestic gas production by providing support for short-term drilling, gas infrastructure upgrades, and exploration. This initiative is a clear signal of the New Zealand government’s focus on developing indigenous energy and gas resources to help reduce its reliance on energy imports and, in turn, strengthen its energy security.

Regulatory Reform

Reforms to the permitting framework have provided greater flexibility in licence management, streamlined decommissioning requirements, and improved regulatory clarity for investors.

These changes have helped to provide a stable and predictable environment for companies prepared to invest in domestic production, such as Sunda.