Briefing papers warn of gas shortfall

New Zealand may have a gas shortfall by 2010, requiring the Government to consider its position on importing liquefied natural gas.

The Economic Development Ministry outlined the problem in briefing papers to new Energy Minister David Parker.

A gas shortage would mainly affect power companies that produce electricity using gas.

A shortfall was likely between 2010 and 2014. New Zealand either had to discover new reserves of gas within the next two to three years, or needed to be able to implement alternatives.

Although importing LNG was a decision for power companies, policy matters would involve the Government, the papers say.

Energy companies would need to make a large capital investment and would have to commit to importing substantial volumes of gas.

Companies might ask the Government for a financial underwrite.

- nzpa