1. The Gas Industry In New Zealand Structure, issues & strategies May 2000

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5. Contents History Overview Production Transmission Distribution & retailing Regulation Industry structure Key issues Strategies

6. History Historically many Councils operated coal gas operations, with LP reticulation to consumers. Several factors led to the eventual demise of this industry… The overall inefficiency of the gas production process. Lack of reinvestment in the LP networks. Increasing competition from electricity. Discovery of natural gas around Taranaki in the 1960’s. A few bottled gas operations remain in areas where gas is not reticulated.

7. Overview This slide show focuses solely on the reticulated gas industry, which is based in the North Island due to production location. The industry operates at 4 predominant levels… Production HP transmission LP distribution & retailing Wholesaling Each vertical segment has several player, who in turn have a wide range of ownership.

8. Production Most gas production in NZ occurs in and around Taranaki, although exploration in northern Hawkes Bay seems promising. Estimated reserves are in the order of 2,510 PJ. Uses include electricity generation, chemical feedstock and transport fuels.

9. Transmission The transmission network is owned by Natural Gas Corporation (NGC) except for the Oaonui to Huntly pipeline. NGC’s network comprises 2,300 km of HP pipelines and associated facilities that stretch from Taranaki as far as Whangarei, Gisborne and Wellington.

10. Distribution & retailing

11. Regulation

12. Structure

13. Key issues

14. Strategies

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