Project benefits
New Zealand’s demand for gas has, for the past few decades, been met by the giant Maui gas field. The Kupe Field was discovered in 1986 but has remained undeveloped because it was uneconomic due to the abundant cheap gas flowing from Maui.In 2003, an independent evaluation was undertaken of the Maui gas reserves. This redetermination found the gas reserves in Maui to be significantly lower than originally estimated, prompting concern about New Zealand’s future energy supply (Crown Minerals 2003). With the predetermination of the Maui gas reserves and the rapid increase in domestic gas demand to power electricity generation, new supplies of gas in New Zealand are essential.
By introducing a new and alternative supply of gas to New Zealand, the Kupe Gas Project will make a substantial contribution towards addressing the widening gap between gas demand and supply in New Zealand.
"Oil and gas have a vital role to play in the future energy mix of New Zealand. The development of the Kupe gas field now sees it become an important part of the mix.
"Production from the Kupe field will materially impact gas supply in New Zealand, with initial production likely to exceed 20 Petajoules per year. It is anticipated that the field will produce condensate, gas and LPG for longer than 15 years.
Developments such as Kupe and others currently underway in Taranaki including Pohokura, Tui, Maari place a strain on both capital, people and regional infrastructure resources. Good projects will attract the capital and the people to plan, build and deliver the energy resources to meet New Zealand’s current and future industry and domestic needs. The Taranaki region and its people have stepped up to the plate and supported these key energy developments.
The importance of gas and projects such as Kupe are recognised by both central and local government. The development of the Kupe field is expected to create many high skill requirement jobs in the Taranaki region. During the construction phase up to 350 personnel will be employed. During the production phase of operations, it is anticipated that at least 20 staff will be directly employed. Jobs created during the production phase of operations will be long term in nature.
As the operator for the Kupe Joint Venture, Origin Energy is continuing the Taranaki District tradition of keeping the public both informed and involved on the various development options." - the former Associate Minister and Member for New Plymouth, the Hon. Harry Duynhoven
The Kupe Gas Project has a range of other significant benefits. It will:
- Improve the security of gas supply in New Zealand, through developing a new source of gas
- Create local jobs and contracting opportunities during the construction period and the term of the project
- Potentially attract regional development and investment opportunities to the Taranaki region
- Increase the reputation of Taranaki as New Zealand’s Energy Region– currently the Taranaki Basin is the country’s only hydrocarbon producing area and many downstream industries are based on the processing, distribution, use and export of hydrocarbons
- Minimise the volume of greenhouse gases emitted to the atmosphere – when burnt, natural gas generates about 50% less greenhouse gas than imported or domestic coal.
Natural gas supply (P50) vs. demand in New Zealand