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The Times

NZ’s gas shortage was not caused by the offshore exploration ban – but it was still a flawed policy

  • Written by David Dempsey, Associate Professor in Natural Resources Engineering, University of Canterbury
NZ’s gas shortage was not caused by the offshore exploration ban – but it was still a flawed policyGetty Images

Historically, gas in New Zealand traded below NZ$10 per gigajoule. When prices hit $50 per gigajoule in August this year, anyone with gas to sell could have made a lot of money.

But there clearly wasn’t much gas around. In the end, the big generators Genesis and Contact had to buy gas off Methanex to keep the lights on.

How did...

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