Jones said there was demonstrated potential for significant development in new gas. Although investors were interested, the Government needed to show that its commitment wouldn’t be a wasted exercise.
“Talk is cheap, but having skin in the game as a cornerstone investor in production demonstrates our own commitment to meeting our future gas needs.”
Natural gas would continue to be critical for at least the next 20 years in delivering secure and affordable energy.
“We are already feeling the pain of constrained supply,” Jones said.
In 2018 the previous Labour-led Government brought in a ban on offshore exploration, although that didn’t affect the production drilling of existing gas fields.
Jones said that decision had created a sovereign risk for NZ.
The new initiative is designed, at least in part, to help allay concerns about the ban being introduced after a change in government.
Jones called on other parties to be pragmatic about the role of natural gas in the coming decades.
“If we really want to address the current reality that we rely on imported coal, not domestic gas, to get through winter, we must be prepared to stand alongside our petroleum sector as a co-investor.”
Do you have questions about the Budget? Ask our experts - business editor at large Liam Dann, senior political correspondent Audrey Young and Wellington business editor Jenee Tibshraeny - in a Herald Premium online Q&A here at nzherald.co.nz at 9.30am, Friday, May 23.
