New Zealand's Gas Crisis: Prices Triple, Fields Deplete

New Zealands gas market faces a critical shortage, with domestic production plummeting and hydro power significantly reduced due to droughts. This has led to a tripling of wholesale electricity prices and a surge in gas prices. Policy changes, including a ban on new offshore exploration and strict liability rules, have stalled drilling and accelerated field depletion. The government is now pushing back, reopening permits and pledging funding for projects. LNG imports could provide a winter backstop, but high shipping costs and the need for floating regas units may delay this solution. Industries like Methanex face immediate challenges, potentially leading to optimization or relocation, while volatile prices persist until new supply is available.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.