Prime Minister Christopher Luxon and Labour Party leader Chris Hipkins.
Photo: RNZ
Prime Minister Christopher Luxon has written to Labour leader Chris Hipkins asking him to commit to supporting offshore exploration for natural gas for at least the next 10 years.
In the letter, seen by RNZ, Luxon said if Labour reinstated a ban on offshore gas exploration, it might pose an insurmountable barrier for some investors.
“You have said previously that, if elected, Labour will not spend its time ‘pausing, cancelling, and reviewing everything’. But bipartisanship must be more than a political slogan,” Luxon wrote to Hipkins on Monday.
“Hence, I am writing to seek a commitment from the Labour Party to support offshore exploration for natural gas for at least the next ten years.
“Under even the most ambitious plans for New Zealand’s renewable transition, a secure supply of fuel remains a cornerstone of our energy landscape – underpinning stability and affordability for families and businesses alike.”
The letter comes amidst a backdrop of rising energy prices. Gas prices have more than doubled on average over the past five years with supply falling faster than expected.
Luxon said he was hopeful by lifting the ban on offshore exploration, New Zealand would reach a secure supply of fuel to support the country’s energy transition.
The government reopened applications for oil and gas exploration across the whole of New Zealand for the first time since the 2018 ban, with a new faster route for awarding permits.
In a statement, Resources Minister Shane Jones said a new “open market” pathway would allow firms to apply at any time for permits to explore new areas of land and sea.
After an application was lodged, competitors would have three months to make rival bids, with officials then choosing the strongest proposal.
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