Fuelling resilience and supporting transition

Taranaki has played a pivotal role in meeting New Zealand’s energy needs since the country’s first oil discovery in the 1860s, and the major commercial gas find at Kapuni in 1959. This discovery sparked the development of gas pipeline infrastructure and a nationally significant energy sector—anchored in Taranaki—which has supported the country’s homes, industries, and export economy for decades. 

With extensive infrastructure, engineering expertise, processing facilities, and supply chain capability, the region remains the only natural gas-producing region in New Zealand. 

With extensive infrastructure, engineering expertise, processing facilities, and supply chain capability, the region remains the only natural gas-producing region in New Zealand. 

Today, all of New Zealand’s natural gas is produced from fields in Taranaki. There are six main fields: 

  • Offshore fields: Māui, Pohokura, and Kupe 
  • Onshore fields: Mangahewa, Turangi, and Kapuni 

There are 12 additional smaller fields also located in Taranaki. 

To help meet demand fluctuations, gas is stored at the Ahuroa Gas Storage Facility, a repurposed gas field that provides critical backup to help manage seasonal and daily energy needs. 

Natural gas is an important part of our energy system

Around 20-30% of natural gas each year is used for electricity generation. Although New Zealand has an abundance of renewable resources, such as hydro, solar and wind, these resources are intermittent, which means gas plays an important role to ensure the security of energy supply. 

The natural gas from Taranaki contributes valuably to the New Zealand energy mix by providing instant heat, energy and hot water supply to around 290,000 New Zealand residential customers as well as commercial users, such as restaurants, hotels and hospitals, and some large industrial consumers. 

The single biggest user of natural gas is Taranaki-based Methanex, who uses it as a feedstock to produce methanol for export. Natural gas is also used to make fertiliser for use on our farms. 

Ongoing Transition in the Industry - Current Conditions

Whilst gas plays a critical role in our energy security, especially firming generation for our electricity and as feedstock for key industries, gas production is in decline. The reasons underpinning this situation are complex, however changes in Government policies in 2018, the cooling of confidence/increasing costs of drilling, a lack of bipartisan energy strategy and pressure to meet sustainability targets have been cited amongst contributing factors. 

The total energy value of energy produced by gas in 2023 was 135 petrojoules (PJs), and in 2024 this was down to 106PJ’s. A decade ago, New Zealand’s annual gas production stood at 200PJ’s. 

There are, however, signs that mature wells still hold valuable quantities of resources. 

Recent gas finds, analysis and drilling campaigns underway include: 

Pohokura: In March 2025, a successful joint venture at the Pohokura Onshore Well Number 5 (POW-05) between operator OMV and Todd Energy, is anticipated to deliver about 4 petajoules of gas per annum. 

Turangi: In late 2024, Greymouth Petroleum announced a substantial gas discovery in the onshore Turangi field, located in northern Taranaki. 

Tariki: In Dec 2024, the New Zealand Energy Corporation (NZEC) and L&M Mining tapped a new supply in the existing Tariki field, with further testing underway to determine the full extent. 

Looking ahead

As New Zealand transitions to a lower-carbon future, the natural gas industry continues to provide essential resilience and reliability — powering homes and businesses, supporting key industries, and firming our renewable electricity system. Significant efforts are underway to maximise existing resources, while also preparing infrastructure to accommodate renewable gases like biogas and green hydrogen, ensuring gas remains a valuable part of the future energy mix. 

The sector, government, and energy users are working on several fronts to ensure continued access to gas where it's needed most: 

  • Exploration and development of existing fields and known reserves 
  • Investigating LNG importation options to add flexibility and resilience 
  • Development of renewable or “green gases”, such as: 
  • Biogas/biomethane: Derived from organic waste 
  • Green hydrogen: Produced using renewable electricity and water 

These alternatives can increasingly use the existing gas infrastructure to reach consumers—helping New Zealand decarbonise while preserving energy reliability and industrial competitiveness.