New Zealand’s government announced Monday its intention to reverse its ban on offshore oil and gas exploration by passing legislation this year.
The proposal aims to enhance investor confidence and strengthen New Zealand’s oil and gas sector. Accordingly, one key effect of the 2024 proposed amendments to the Crown Minerals Act (CMA) 1991 will be reversing the 2018 ban on mining exploration of the onshore Taranaki. This removes 2018 restrictions, preventing new petroleum permit holders from accessing Taranaki conservation areas. Areas protected under Schedule 4 of the CMA will remain protected nonetheless.
The plan to enhance New Zealand’s energy security comprises five steps. First, the national government, led by Christopher Luxon, aims to fast-track the consent process for the CMA Amendment Bill by the end of the year. Second, it aims to remove regulatory obstacles over “critically needed facilities” to import liquified natural gas as a response to energy shortages. Third, the government intends to relieve restrictions on energy-generating and retailing companies (“gentailers”). Fourth, the government will allow hydro contingency to the gentailers. This means gentailers will have access to hydro lakes to manage the risk and ensure the reliability of electricity supply when there is uncertainty or disruption in hydroelectric power generation. Fifth, the government aims to “improve electricity market regulation.”
Green Party Energy spokesperson, Scott Willis, has stated the spike in electricity prices and shortage is from “profiteering”. He believes the government should re-invest profits into renewable energies rather than gentailers to disrupt the energy market monopoly. Labour spokesperson, Rachel Brooking, has further come out stating the potential socio-environmental consequences of this plan. She considers that the plan and bill could override environmental protections and pose a significant threat to New Zealand Aotearoa’s natural taonga (treasures). Various environmental groups, experts and iwi have also communicated their concerns over the damage the plan will cause.
