Industry joins together on Gas Transition Plan

Industry bodies GasNZ, Energy Resources Aotearoa, and the Major Gas Users Group (MGUG) have come together to provide united sector input to the Government’s upcoming Gas Transition Plan.

The Government’s forthcoming Gas Transition Plan is one of a range of activities outlined in the Government’s Emissions Reduction Plan to deliver a transition to national net zero emissions by 2050. The joint group has commissioned Castalia to prepare the report who will start stakeholder workshops next week.

The three organisations represent members from across the energy value chain and are united in their view that gas - in its many forms - will be vital to and beyond New Zealand’s transition to net zero carbon emissions. The project will deliver a public report setting out the sector’s perspective on pathways and the opportunities and trade-offs to be made through the transition.

GasNZ Chief Executive, Janet Carson, says this project will mark the first time the organisations have worked together to provide a joint view on the gas sector to Government.

"It’s an exciting period. There are many types of gas that can contribute to New Zealand’s broad energy mix. For tomorrow’s energy, we’re looking to gases like hydrogen, biogas and bioLPG as part of that mix - to energise our homes and businesses, and help NZ achieve net zero carbon by 2050," Carson says.

Energy Resources Aotearoa Chief Executive, John Carnegie, says the joint team brings unparalleled gas sector experience to help customers and businesses with the challenges of transition to a net zero emissions economy.

"Our members represent all major gas companies in the country. Across the board they are thinking about the future of gas and the importance of the energy trilemma. Businesses and households want energy that is affordable, reliable, and sustainable."

Secretariat for Major Gas Users’ Group Inc (MGUG), Richard Hale, says MGUG members are significant contributors in the New Zealand economy, as exporters or in import substitution. In developing a Gas Transition Plan it is vital that the role for gas in both the energy transition and as a pathway for decarbonising the economy is well understood including potential gains and losses.

The shape that the Gas Transition Plan takes will have profound on New Zealand’s future. A smooth transition to a net zero emission economy would ensure reliable and affordable forms of energy are available to consumers, while a disorderly transition could create the sort of energy shortages that have affected other parts of the world. The terms of reference for the Government’s Gas Transition Plan are available here. The Plan is to be published in 2023 and will in turn inform an Energy Strategy to be published in 2024.