Shane Jones: Resources Minister on the first two projects funded by the Gas Security Fund
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What is the Gas Security Fund and how is the $23.5 million being allocated to Todd Energy’s Taranaki projects?
So the money from the $200 million gas security fund is about to flow. Todd Energy is going to get $23.5 million for a couple of projects in Taranaki. They put in 10 of their own. In theory, they unlock almost 20 petajoules of extra gas over the next five to nine years. Shane Jones is in charge of all of this, and he's back with us. Morning. Hi. How's the ratio work, Dad, if you give them 23 and they put in 10? How's that work?
Why does the government say incentives are needed to bring investors back into New Zealand’s gas sector?
Well, the real pressure is... Can we entice anyone to come back into the sector, given that they read the news, they watch the media, and in the event there's a change of government, there's going to be a cancellation of the whole sector. So there needs to be incentives and encouragement for them to come back in. I'm happy that Todd are spending some of their own money, and I'm happy that our cabinet's mandated me to use the taxpayer purse to ensure we don't run out of gas.
So those comments you made yesterday, you want to use all 200 by election time, is that real?
Well, what is authentic is the fact that the Supreme Court, copying the Supreme Court of the UK last November, December, made a decision and made it incredibly difficult in New Zealand for us to use our indigenous gas resources unless we go through an ideological jungle. Our officials have guided us through that, and obviously we're not going to do anything reckless. We'll take the advice of the officials. There's a chap called Andy Knight.
How realistic is the claim that the funded projects could unlock up to 20 petajoules of additional gas reserves?
He's the most knowledgeable guy in New Zealand on oil and gas. He's guiding us. and other cabinet ministers will sign it off along with myself. The 20 petajoules, is that real or a hope? I remember a famous prime minister using the term aspirational. Look, I can only go on what we're told geologically, and there's both the potential and the productive, and we've been given by our geological advisors that as an upper limit, but things are changing. sadly dire. We are still attracting interest from overseas and domestically to expand our own gas sector. But let's be straight with each other on this program.
What political and ideological challenges are affecting New Zealand’s natural gas development?
There is an element in New Zealand's political, ideological culture who feels that New Zealand should not have a natural gas industry. I don't belong to that tribe of Luddites.
No, indeed not. But the Methanex thing last week, the decision around that loosens up a little bit of gas around the place. This may or may not work, and we're throwing money at it. Is there a risk profile for you that you're backing something that, you know, as much as you may want it, it doesn't work because there is no gas there?
Well, no, we're advised that there is gas there. But we're also advised that people have been unwilling and will remain unwilling on their own to continue to invest and take a risk if there's some prospect that the entire sector will be closed down again.
What are the next steps and potential risks for the funded projects and the broader gas pipeline strategy?
Which there is. Well, Metanix provides a short-term fill-up. We've got to look at some storage, work with the current holders of those rights. And sadly, until such time, we get a quality of, I don't know, direction and clarity after the election and we'll know where we are in relation to these luddites who are ideologically trying to pollute our
capacity to make money and grow in the country and good to talk to you appreciate it shane jones who's the minister of resources and that goes back to that conversation that we've had a lot but more recently that you need some sort of pipeline no pun intended on major projects and despite the fact we all agree that we want some sort of pipeline on major projects we in that particular area do not have one
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Chapters
5 chapters
1
What is the Gas Security Fund and how is the $23.5 million being allocated to Todd Energy’s Taranaki projects?
0:00–0:23
2
Why does the government say incentives are needed to bring investors back into New Zealand’s gas sector?
0:23–1:17
3
How realistic is the claim that the funded projects could unlock up to 20 petajoules of additional gas reserves?
1:17–2:02
4
What political and ideological challenges are affecting New Zealand’s natural gas development?
2:02–2:43
5
What are the next steps and potential risks for the funded projects and the broader gas pipeline strategy?
2:43–3:33
Speakers
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