Oil & Gas
NZ's domestic petroleum sector — concentrated in Taranaki, rapidly declining.
The Big Picture
New Zealand's oil and gas sector is a study in decline. Domestic production is concentrated almost entirely in the Taranaki region, and without new exploration, major fields are depleting faster than expected. Gas, in particular, has become a flashpoint: it's critical for electricity firming and industrial use, but supply fell over 20% in 2024 alone.
Sources: MBIE Energy in New Zealand 2025, Electricity Authority
The Gas Fields
New Zealand has six major gas fields, all in or offshore from the Taranaki region. The three offshore fields (Pohokura, Maui, Kupe) historically provided most supply, but Pohokura and Maui are in steep decline.
| Field | Type | Operator | Status |
|---|---|---|---|
| Pohokura | Offshore | OMV | ● Critical decline |
| Maui | Offshore | OMV | ● 85% decline since 2000 |
| Kupe | Offshore | Beach Energy | ● Below expectations |
| Mangahewa | Onshore | Todd Energy | ● Declining |
| Kapuni | Onshore | Todd Energy | ● 55% decline since 2000 |
| Tūrangi | Onshore | Todd Energy | ● Active |
Key Operators
OMV (Austria) — Largest producer, operates Maui and Pohokura offshore fields. Has been reducing NZ presence.
Todd Energy (NZ) — Major onshore operator. Privately held, long history in Taranaki.
Beach Energy (Australia) — Operates Kupe field. Kupe KS-9 well underperformed expectations.
Smaller players — 12+ smaller onshore fields operated by various parties.
Sources: MBIE, Electricity Authority, company reports
Who Uses the Gas?
Natural gas in New Zealand serves four main purposes, with industrial use dominating. Unlike most countries, NZ has no LNG import or export facilities — all gas produced is consumed domestically, and all decline in supply must be matched by decline in demand.
| User | Share | Notes |
|---|---|---|
| Methanex (methanol) | ~40% | Largest single user. Exports to Asia-Pacific. Idled plants twice in 2024-25. |
| Electricity generation | ~30% | Critical for dry-year backup and evening peaks. ~105 TJ/day winter average. |
| Industrial process heat | ~20% | Food processing, manufacturing, hospitals, schools. |
| Residential/commercial | ~2% | Cooking, heating. Limited impact from supply constraints. |
Sources: MBIE Energy in New Zealand 2025, Electricity Authority
The Oil Situation
Oil is a different story. NZ produces light, sweet crude — almost all of which is exported because it wasn't suited for the Marsden Point refinery. Since that refinery closed in April 2022, NZ imports 100% of its refined fuel needs.
Production
~45 PJ crude oil in 2023, mostly from Maari, Pohokura, and Maui fields. Almost entirely exported to international refineries.
Imports
100% of petrol, diesel, and jet fuel imported as refined products from Singapore, South Korea, and Japan.
Marsden Point
NZ's only refinery closed April 2022. Now operates as Channel Infrastructure import terminal, handling 3-3.5 billion litres/year.
Strategic reserves
NZ maintains fuel stockholding obligations to cover supply disruptions. Jet fuel stocks notably tight.
Sources: MBIE, Channel Infrastructure
Policy Timeline
Oil and gas policy has swung dramatically in recent years, creating uncertainty for investors and operators.
Sources: MBIE, Ministry for the Environment, industry reports
Energy Security Implications
The gas squeeze has real consequences for electricity security and industrial activity.
🔌 Electricity Firming
Gas plants provide critical backup when hydro is low. The 2024 crisis showed what happens when both are constrained simultaneously.
🏭 Industrial Curtailment
Methanex idled plants. NZAS smelter reduced load. Critics say NZ is "de-industrialising to keep the lights on."
🪨 Coal Resurgence
Coal imports surged from 260 kt (2023) to 900 kt (2024) to ~1.36 million tonnes (2025). The only immediate backstop.
Floating storage and regasification unit (FSRU) being explored. Global availability tight, NZ faces premium as small/remote market.
Sources: Transpower, Electricity Authority, MBIE, industry analysis
Looking Ahead
Gas will remain part of NZ's energy mix for years, but its role is shrinking and increasingly contested.
| Factor | Direction | Implication |
|---|---|---|
| Production | ↓ Declining | Annual production likely below 100 PJ within two years |
| Exploration policy | ↑ Opening | Ban removal proposed, but lead times mean no new supply before 2030 |
| Electricity role | → Shifting | Moving from baseload to peaking/backup only |
| Industrial demand | ↓ Constrained | Users adapting, electrifying, or reducing operations |
| LNG imports | ? Possible | Being explored as winter backstop, earliest 2028-29 |
Track It Yourself
MBIE Energy Statistics
Quarterly production data, reserves updates, supply and demand.
NZ Petroleum & Minerals
Permits, field data, exploration activity, technical reports.
Sources: MBIE, Electricity Authority, industry analysis