It has also been suggested that imported gas could be put into the current network through links to an existing offshore field. Photo: 123RF
Importing natural gas looks like a viable option to make up for declining local gas production and help secure power supplies, a power company says.
Meridian Energy is looking at importing liquefied natural gas (LNG) coming in through land-based terminals as one solution.
At an investor briefing, Meridian Energy chief executive Neal Barclay said it was planning for renewable energy and decarbonisation of the economy to meet climate change goals.
"The gas sector, in particular, has been challenging. We've had significant curtailment of investment over a number of years largely driven by government policy settings back in 2018 and most of the investment that's gone into the sector hasn't delivered the results we would like."
The electricity system would need gas for some time to provide the necessary back up of fuel to meet current and rising electricity demand, Barclay said.
"We need that flexible, dispatchable demand and supply, and gas must remain part of the sector for some time to come."
Gas has been used to quickly fire up power stations, known as peakers, to provide electricity when demand rises and/or supplies from hydro, wind and other renewable sources dip. The peakers have helped to reduce the need to burn coal at the Huntly power station.
Barclays said indications were that importing LNG was a commercially viable option to supplement dwindling local gas output, but the government was making it clear that the private sector and market had to solve the problem.
"As part of the solution it's looking more and more compelling [that] LNG import could be a way through this."
The options currently being floated are land-based import terminals at either Port Taranaki or Marsden Point in Northland on the site of the old oil refinery.
It has also been suggested that imported gas could be put into the current network through links to an existing offshore field.
The cost of the various options range between $200 million and $700m.
In 2009, power companies Genesis and Contact deferred plans for the possible import of gas through Port Taranaki as not necessary given a lift in local production.