Overview

The Government's emissions reduction plan includes work to develop a Gas Transition Plan to drive emission reductions from natural gas.

The Gas Transition Plan

The Gas Transition Plan will be a key input into a broader Energy Strategy, showing how emissions from gas can be reduced in line with targets in emissions budgets, in legislation, and in New Zealand's international commitments.

We worked with the Ministry of Business, Innovation and Employment to develop the plan. 

See more information about the Gas Transition Plan on MBIE's website

In 2023, MBIE consulted widely on the key challenges and opportunities in the gas transition.

See the Developing tab for more information on the consultation. 

Developing

In August 2023, the Government sought feedback on a programme of work to transition New Zealand towards a low-emissions economy.

About the consultation

The Government consulted on 5 streams of energy policy including the Gas Transition Plan Issues Paper.

We worked with the Ministry of Business, Innovation and Employment (MBIE) to develop the Issues Paper. Views were sought on key challenges and opportunities in the transition.

MBIE hosted a webinar presentation on the development of the Gas Transition Plan on 30 August 2023 as well as webinars on the wider energy consultations which began on 18 August 2023. 

We recommended industry and stakeholders provided feedback on technologies and choices discussed in the Issues Paper. These include biogas, hydrogen and carbon capture, utilisation and storage.

Consultation now closed

Consultation on the Issues Paper closed on 2 November 2023.

You can read about the Consultation on advancing New Zealand's energy transition on MBIE's website.

 

Supporting research 

To support the Issues Paper, we commissioned research on a variety of topics. The insights gained are likely to be valuable to interested parties.

The reports are available below and on MBIE's website.

Topics include:

  • Gas Transition Plan - Biogas Research Report analyses the potential for biogas, and the feasibility and economics of the possible supply opportunities. Read report on MBIE's website.
  • Regulatory Options for New Zealand’s Gas Transmission System describes options for the economic regulation of the gas transmission network to inform the development of the Gas Transition Plan. 
    Read the report on MBIE's website.
  • Review of CCUS/CCS Potential in New Zealand reviewed the technical and economic feasibility of carbon capture, utilisation, and storage opportunities and reports on two potential candidates. 
    Read the report on MBIE's website.
  • Carbon Capture and Storage: Taking Action under the Present Law examines the settings for carbon capture and storage and makes recommendations for change and reform. It examines relevant law and policy. 
    Read the report on MBIE's website
  • LNG Import and Options to Increase Indigenous Gas Market Capacity and Flexibility in New Zealand provides an analysis of the potential role that liquefied natural gas imports and additional indigenous gas storage could play in the New Zealand energy sector. 
    Read the report on MBIE's website.
  • New Zealand Hydrogen Scenarios and the Future of Gas aims to understand the future role of hydrogen in New Zealand might impact the natural gas sector. 
    Read the report on MBIE's website.

 

More information

Gas Transition Plan (MBIE website)

Consultation on advancing New Zealand's energy transition on (MBIE's website)

 

Related documents

  • Gas Transition Plan Issues Paper August 2023
    1.4 MB Adobe Acrobat PDF file
  • Gas Transition Plan Draft 2023 (GIC)
    3.1 MB Adobe Acrobat PDF file
  • Gas Transition Plan Biogas Research Report February 2023
    3.2 MB Adobe Acrobat PDF file
  • Regulatory options for New Zealands gas transmission system December 2022
    1.6 MB Adobe Acrobat PDF file
  • Review of CCUS CCS Potential in New Zealand March 2023
    2.5 MB Adobe Acrobat PDF file
  • Carbon Capture and Storage Taking Action under the Present Law 2023
    602 KB Adobe Acrobat PDF file
  • LNG import and options to increase indigenous gas market capacity and flexibility in New Zealand March 2023
    3.7 MB Adobe Acrobat PDF file
  • New Zealand Hydrogen Scenarios and the Future of Gas September 2022
    929 KB Adobe Acrobat PDF file

Gas market settings investigation

In 2021 we investigated whether current market, commercial and regulatory settings that provide for gas availability and flexibility were fit for purpose in supporting the energy transition.

Security of supply

New Zealand is transitioning to a future with 100% renewable electricity from 2030 and a net zero carbon economy by 2050. During the transition, the electricity industry needs security of gas supply. Major gas users also need certainty and transparency for their operations.

Minister's request

We began the gas market settings investigation work after a request from the then Minister of Energy and Resources, Megan Woods, who asked in a letter how:

  • current contractual arrangements, including tendering processes, affect overall availability and flexibility of gas supply
  • current market, commercial and regulatory settings:
    • support security of supply in the electricity market (particularly during periods of heightened demand),
    • provide major gas users with sufficient certainty and/or transparency about gas supply for their operations,
    • whether they are fit for purpose during the transition.
    • Related Documents

See the Minister's letter below in related documents.

Consultation

We released a consultation paper (see below) that we developed following conversations with a wide range of stakeholders from across the gas and electricity sectors.

Final report

Based on the consultation feedback we wrote a report for the Minister, Gas Market Settings Investigation

This report provided useful background for developing the Gas Transition Plan.

The report is available below.

Related documents

  • Letter from Hon Dr Megan Woods Dec 2020 requesting Gas Industry Company investigates gas market settings
    480 KB Adobe Acrobat PDF file
  • Gas Market Settings Investigation Consultation Paper
    1.9 MB Adobe Acrobat PDF file
  • Gas Industry Co Gas Market Settings Investigation
    5.1 MB Adobe Acrobat PDF file
Last updated: 30/05/2024, 5:05 pm

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