Second petroleum permit in eight years signals New Zealand’s gas reversal

Summarised by Centrist

New Zealand has granted only its second petroleum-mining permit in eight years, another sign that the country is retreating from the assumption that renewable electricity can quickly replace domestic gas.

Matahio NZ Onshore has received a ten-year permit covering the Puka oilfield and Oru prospect in the onshore Taranaki Basin.

Resources Minister Shane Jones said the approval showed that momentum in the petroleum sector “is growing”.

Prospective resources are not the same as proven reserves, and a permit does not guarantee commercial production. Exploration, financing and development still have to stack up.

Nevertheless, the decision marks a significant change in direction.

Labour halted new offshore exploration permits in 2018 and restricted new onshore allocations to Taranaki. Supporters said that sent a necessary signal about the transition away from fossil fuels. Critics argue it discouraged investment before New Zealand had secured dependable replacements.

Read more at Reuters

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