New Zealand’s government announced plans to pass legislation by the end of the year to reverse a ban on offshore oil and gas exploration, which has been in place since 2018. This move aims to address recent energy shortages and remove regulatory barriers for importing liquefied natural gas (LNG).
Prime Minister Christopher Luxon emphasized that New Zealand has faced severe energy shortages, leading to significant price spikes. He urged opposition parties to support the bill, stating, “It would be the sensible, common sense thing to do if they genuinely cared about New Zealand’s energy security.”
The previous Labour-led government imposed the ban, which has contributed to a 12.5% decline in natural gas production in 2023 and a further 27.8% drop in early 2024. This decline has resulted in a nationwide energy shortage, forcing generators to rely more on coal and diesel. Energy Minister Simeon Brown noted that renewable sources like hydro, solar, and wind have not compensated for the shortfall due to low water levels and insufficient wind and sunlight.
In addition to lifting the ban, the government plans to streamline processes for consenting and maintaining renewable energy projects. The goal is to complete consent processing for most renewable energy projects within one year and to initiate a feasibility permit round for offshore renewable energy schemes by 2025.