New Zealand faces an energy shortage, prompting government plans to reverse offshore oil and gas exploration ban and boost Liquefied Natural Gas imports.

New Zealand is facing an energy shortage, causing high electricity prices and negatively impacting its manufacturing and export sectors. The shortage is due to factors including low lake levels, insufficient wind and solar energy, and a lack of natural gas supply. In response, the government plans to reverse the ban on offshore oil and gas exploration and will pass legislation to remove regulatory barriers to the construction of Liquefied Natural Gas import facilities by the end of 2024. The government will also consider allowing electricity distribution businesses to own generation assets, ease restrictions on electricity lines companies owning generation, and improve electricity market regulation. Experts warn that while LNG can provide flexibility, it is not a long-term solution and should not be seen as a replacement for domestic natural gas. Instead, they recommend focusing on building more renewable energy infrastructure with storage solutions.

August 26, 2024
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