The Government's looking to invest in more companies that can get the country more gas, fast.
It's widening the scope for its $200 million gas co-investment fund.
The fund —created to support new gas field developments— will now invest in a broader range of projects that will accelerate or increase the volume of gas to market.
Energy Resources Aotearoa Chief Executive John Carnegie told Ryan Bridge it's an encouraging move.
He says the focus should now be on creating durable policy settings to give investors confidence in the future.
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Episode Transcript
Government's lowering the bar for gas companies to get access
to that big fund, the two hundred million bucks, the
Gas Security Fund. This is meant for new exploration. They're
loosening the criteria, opening it up to a wider range
of products. Boost down dwindling supply. We know we need
more of it. This means, on top of looking and
drilling for more gas, ourselves will take applications for anyone
(00:21):
who can get us more gas quickly. John Carnegie is
the Energy resources out there at our CEO with me
this morning.
Speaker 2 (00:28):
John, Good morning, Yeah, good morning Ryan.
Speaker 1 (00:30):
How many applications have we had for the current regime
do you know? Or how much interest?
Speaker 2 (00:34):
Not much? Oh, I know, we're already seeing some positive signs.
I spent some time last month with international partner groups
in Central America and the UK that have members who
are actually looking incredibly closely at the whole package of
the new regulatory settings for the sector and this change
(00:54):
will hopefully spark more interesting and actually we've already had
one new permit at the time, and we expect more
to come.
Speaker 1 (01:02):
How many more do you reckon?
Speaker 2 (01:05):
Well, that's going to be a judgment made by the
companies as to whether or not New Zealand's investible and ultimately,
companies will only invest if they see stable, durable policy
and that's why bipartisan political support for these measures are
so crucial.
Speaker 1 (01:22):
Which we haven't got yet obviously. Is you know Shane
Jones has been talking about, is this actually the amount
two hundred million is not enough in the fund or
is it the criteria? Are we limiting it at too much?
And is that why they're having to change this now?
Speaker 2 (01:37):
No, Look, I think more money is always nice, Ryan,
Oil and gas exploration is an expensive business and frankly
two hundred million won't go far, especially if it's sliced thinly.
But actually, as I've just alluded to, it as much
about the overall risk profile of the activity than the
money itself, and so it's encouraging the new level of support.
(02:02):
But the focus now should be on creating durable, evidence
based policy settings to give investors confidence for the future
and on helping reduce their cost base.
Speaker 1 (02:13):
Appreciate your time is wining, John John Carnegie Energy Resources
out here at our CEO.
Speaker 2 (02:17):
For more from earlier edition with Ryan Bridge.
Speaker 1 (02:19):
Listen live to news talks at b from five am
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