August 2020 Forum with International Gas Union President PEPANZ is proud to be hosting an exclusive event with President of the International Gas Union (IGU) Dr Joe Kang today (4pm August 31st). This is a unique opportunity to hear from a global leader on the trends for natural gas across the world, including the impact of Covid-19 and the future for LNG, hydrogen and carbon capture and storage. RSVPs are essential for this event - please email admin@pepanz.com. Unfortunately we have had to postpone our New Plymouth pre-election forum due to raised Covid-19 alert levels. Stay tuned for a new date, alert levels permitting. Decommissioning updateThe Government is planning to update legislation on decommissioning with the aim of reducing the financial risk to the Crown following issues with the Tui field. PEPANZ generally supports the Crown having greater enforcement tools and greater ability to manage decommissioning risks, as long as the yet-to-be-developed regulations are risk-based and well-developed. However, we are concerned at a proposal for former permit holders to held responsible for decommissioning even after a permit is transferred (i.e. perpetual liability). Importantly, this proposal does not include grandfather (exemption) clauses for existing permits, which means that immediately the economics change for incumbent permit holders who are considering divesting assets. A Bill is likely to be introduced to Parliament before the end of the year with passage likely in 2021. These changes are being progressed separately from wider reform to the Crown Minerals Act. PEPANZ has emailed all members with further detailed background on this issue, so please contact us for further information. Less gas meant higher prices and emissions in 2019Reduced use of natural gas in 2019 led to higher electricity prices, according to the annual Energy in New Zealand report released by the Ministry of Business, Innovation and Employment. “The 43% increase in coal use for electricity generation last year also means higher emissions,” says Petroleum Exploration and Production Association of New Zealand (PEPANZ) Chief Executive John Carnegie. “The dry year for hydro lakes combined with outages at the Pohokura gas field led to this outcome and is a clear warning for the future. It shows that if our natural gas reserves continue to decline then energy prices and emissions are likely to keep rising, as we highlighted in our recent publication 'Asking the burning questions'.” Energy and resources election eventPEPANZ was proud to host our pre-election energy and resources forum last month with an outstanding line-up of speakers, including senior representatives from all major political parties. Over 120 people attended what is likely to be the only in-person event of its kind. Guest speakers included Hon Dr Megan Woods, Jonathan Young MP, Hon James Shaw, Fletcher Tabuteau MP, Hon John Tamihere (Maori Party) and Brooke van Velden (ACT Party Deputy Leader). The full event is now available online on our website. Thank you to our co-hosts Straterra, hosts Buddle Findlay, MC Mike Munro and guest speakers. Industry updates*Kupe upgrade: estimated gas reserves at the Kupe field have increased by 23%. The Kupe field provides around 15% of New Zealand’s natural gas demand and 50% of LPG demand, and is a joint venture between Genesis Energy, NZ Oil & Gas and operator Beach Energy. *Beach Energy cutting emissions: Beach Energy has announced a new five-year target to reduce emissions from its operations by 25 per cent from 2018 levels. *Exploration ban in court: a legal challenge to the Government's 2018 exploration decision is being heard in the High Court in Wellington. Greymouth Petroleum is suing Energy and Resources Minister Megan Woods over how the Government implemented the decision, and the refusal of a permit for the company in Taranaki in 2017. Every month we'll be profiling different PEPANZ members, highlighting the range of skills and services in our local industry. Member profile: Elemental Group LtdElemental Group is an international energy services group dedicated to providing better energy solutions to clients. They provide a full range of professional geoscience, science, engineering, environmental, project management, and financial modelling services for the energy sector. Their petroleum consultancy service provides upstream subsurface, production and commercial expertise. As well as providing specialist personnel to a number of operators in NZ and internationally, some of Elemental’s more recent projects of interest in the petroleum sector include due diligence and asset compliance for the transition of several oil and gas assets in New Zealand. They have also carried out studies and engineering work in both onshore and offshore decommissioning. Elemental Group have been proactively involved in decreasing carbon emissions since the company’s incorporation and are currently pushing for the development of a carbon storage industry under the theme of “Put it Back”. |