Government puts $40.5m into hunt for more gas
The Government will spend $40.5 million from its $200 million gas fund on two gas search projects. Resources Minister Shane Jones announced the spending on 23 September. He said the projects would help secure New Zealand's ongoing energy needs, RNZ.
Where the money goes
$14.5 million will go to Schlumberger New Zealand for 3D maps of what lies underground. The maps use sound waves and computer processing to show rock layers. They cover the Taranaki, East Coast and Great South basins. Explorers can use them free for two years. It is like sharing one detailed map so more companies can decide where to look.
$21.5 million will go to EnZed Energy's Kaheru project. Kaheru is searching for gas that can be brought to shore off the coast of Taranaki. It is targeting 182 petajoules of gas. That is nearly a quarter of New Zealand's current proven and probable reserves.
New Zealand Petroleum and Minerals has also released its 2025 Petroleum Exploration Data Pack. The pack sits with the funded work as background information for explorers looking at areas to bid for.
What happened before
This announcement follows the first two Gas Security Fund projects announced on 7 September. Those involve up to $23.5 million for two projects run by Todd Energy, Beehive. Todd Energy is a New Zealand-owned explorer and producer working in Taranaki.
The spending sits within the conservative coalition Government's plan to reopen blocks outside the onshore Taranaki basin to oil and gas explorers, Argus. That reopening was due in September last year.
The broader context here is the split between shared data and direct help for one project. Paying for surveys is costly. That cost can lock out smaller explorers. Free maps for two years lower that barrier. The test is whether lower early risk brings more bids than paying toward drilling.
In my view, the Kaheru project is the clearer test. The 182-petajoule target is specific. It can be checked against known reserves if drilling goes ahead. Offshore Taranaki is well understood and close to existing pipes and plants. People in Wellington should watch three things. First, the terms of the $21.5 million, whether it must be repaid, paid in stages or linked to a share rather than a straight grant. Second, use of the Schlumberger data, including downloads, licence bids and requests for reprocessing across the East Coast and Great South basins. Third, how funding lines up with consents and block offers. Funding without a clear path to consents and access stalls quickly. Funding paired with those decisions moves faster.
