There’s been a lot of conversation about gas lately. The bottom line is gasfitters and their customers don’t need to worry about gas suddenly running out. Gas plays an important role for New Zealand and continues to be delivered safely and reliably to homes and businesses every day.
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Media releases
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First ever Hydrogen Blending Pilot completed in NZ
New Zealand’s first ever hydrogen blending pilot was carried out in Te Horo on the Kāpiti Coast from June to early October this year. Led by Firstgas (part of Clarus), the pilot involved blending green hydrogen with natural gas into the existing natural gas pipeline.
New Zealand’s first Hydrogen blending pilot reaches 10% milestone
Firstgas, part of Clarus, together with GasNet, Nova Energy, Powerco, and Vector, has reached a key milestone in New Zealand’s first hydrogen blending pilot. Fourteen households in Te Horo, on the Kāpiti Coast, are now receiving a gas blend containing 10% hydrogen by volume, delivered through the existing gas distribution network.
Renewable gas flows in New Zealand pipeline for the first time
First Renewables, in partnership with Ecogas confirmed today that the First Renewables biogas upgrade facility, located at the Ecogas Reporoa Organics Processing Facility is now in production.
Key milestone reached in NZ’s first hydrogen blending pilot
Firstgas is one step closer to commencing New Zealand’s first Hydrogen Blending Pilot with WorkSafe granting two exemptions to Firstgas to enable the project to move forward.
Firstgas appeals Commerce Commissions input methodologies decision
Firstgas announced today it has filed an appeal of the Commerce Commission’s input methodologies (IM) decisions released in December 2023.
Business articles
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Gas vs induction cooktops - which is best for your home?
Thinking about replacing your cooktop? You might be wondering whether gas or induction is the best option for your kitchen. Both have their advantages, from cooking performance to installation and running costs. Here's what to consider when choosing the right cooktop for your home.
What does Methanex's closure mean for New Zealand's gas supply?
Canadian company Methanex has been New Zealand’s largest natural gas user for many years. However, with New Zealand's natural gas supply declining, Methanex announced in September that it would cease production in New Zealand. It will indefinitely idle its production facilities from March, and it has sold most of its gas contracts to local energy providers.
Firstgas helps bridge the gap for Te Araroa walkers
A new suspension bridge over the Whangaehu River is making the Te Araroa Trail safer and more enjoyable for walkers, thanks in part to support from Firstgas. The 120-metre bridge, near Whanganui, has officially opened, providing an important new connection along New Zealand's 3,000-kilometre walking trail.
Taranaki waka ama crew makes world's top ten
Funding from Firstgas, part of Clarus has helped a Taranaki waka ama crew take on some of the world’s best at the International Va’a Federation World Sprint Championships in Singapore.The crew competed in the Master Women’s 40-50 age group division in a W12 event at the championships in August, representing Taranaki on the international stage.
What helps keep New Zealand’s electricity system reliable?
It’s good news for New Zealand’s electricity system as we head into the final months of 2026. Transpower’s latest Energy Security Outlook shows national hydro storage sitting well above historic averages at 133%, with South Island storage at 142%.
Fee removed to encourage underground gas storage
The Government has announced it will remove one of the costs that holds back gas storage development in New Zealand. Currently, developers pay royalties for ‘cushion gas’, which sits in an underground storage facility to maintain total gas pressure. Cushion gas can’t be sold or extracted, but currently requires a 5% fee to be paid on its estimated value.
Why Kiwi businesses rely on gas
When your business needs fast, consistent and controllable energy, natural gas can be a great choice, which is why more than 16,000 New Zealand businesses rely on gas. For many businesses, gas provides energy that is responsive and easy to control. It can heat large spaces, cook with precision and provide continuous hot water, generate steam and support industrial processes that require high temperatures.
How gas storage helps support a reliable electricity system
When New Zealand's energy system needs gas at short notice, one of the country's most important energy assets - the Ahuroa Gas Storage Facility (AGS) is like a giant underground energy battery, quietly working behind the scenes to help keep the lights on across the country.
Frequently asked questions
Gas powers much of New Zealand’s electricity and is the energy of choice for over 300,000 Kiwi homes, businesses, and industries. It supports the grid when renewables fall short—keeping the lights on. People rely on gas for cooking, heating, and instant hot water, while restaurants and industries count on it for high-performance energy and essential materials like cement, glass, and steel.
Gas is an important part of our energy mix and people should be confident there is enough gas to meet their needs until forms of renewable gasses -such as lower carbon gas like biogas upgraded to biomethane and hydrogen blended with natural gas.
The New Zealand Government, along with gas producers, large gas users and industry, are committed to ensuring gas resources are available for as long as possible. In addition, the country’s gas infrastructure is well-developed, with pipelines and storage facilities that ensure a continuous supply of gas to consumers.
As New Zealand moves toward lower-emissions energy, gas remains vital for reliability—giving us time to grow cleaner energy options. Clarus company First Renewables, with Ecogas, has built the country’s first biogas-to-biomethane facility, turning food waste into renewable gas. This is blended into the Firstgas pipeline, supplying the equivalent of 7,200 homes*. While renewable gases are still emerging, our work today is already helping move towards a lower emissions energy future.
*7,200 houses at an average residential gas demand of 22GJ p.a. = 160TJ p.a. (estimated annual biomethane injected at Broadlands).
Unlimited hot water, always - Perfect for busy households, everyone gets a hot shower - even back-to-back.
More space indoors - Gas systems are mounted outside, freeing up your hot water cupboard for a pantry, laundry, or even a second toilet.
Temperature you control - With gas, you can set your preferred temperature (many choose 50C) without worrying about bacterial risk.
Energy efficient – Only heats what you use, no storage losses.
Works when the power’s out - Some models require no electricity at all, keeping your hot water running even during outages.
Gas systems, also known as califonts, heat water only when you need it. Unlike electric cylinders, they do not store hot water. That means endless hot showers, less energy waste, and no more rationing.
Gas fireplaces offer both style and comfort - They create a warm, inviting focal point - much like a wood burner, and bring a cosy atmosphere to any room.
Versatile in design - They can be wall-mounted, suspended, outdoor, or even double-sided.
Sleek and architectural - Gas fireplaces add value and sophistication. Let’s be honest - you won’t see a heat pump featured on Grand Designs.
Gas delivers instant, powerful warmth unlike electric heating, gas heats a room quickly. It is perfect for holiday homes or when you need fast comfort.
No waiting, no timers. Just reliable heat on demand. You can control the temperature easily, and yes, you can even hang your Christmas stockings over the fire.
Gas delivers precise temperature control—chefs can visually gauge flame size and adjust instantly for perfect cooking results.
It offers an instant response—heating up and cooling down happens immediately, keeping up with the demands of a fast-paced kitchen.
In New Zealand, a Restaurant Association survey found 94% of commercial kitchens use gas and call it “vital” to their service.
What does Methanex’s closure mean for New Zealand's gas supply?
Methanex's decision to close its New Zealand operations has raised questions about what this means for the country's natural gas supply, prices and future energy security.
While the closure is expected to make more gas available in the short term, it doesn't create new supply or change the longer-term decline in domestic gas production.
Here we answer some common questions about what this means for businesses using natural gas.
Methanex has been one of New Zealand's largest natural gas users. Its closure is expected to reduce demand for gas, making more available to other users in the short term.
However, this doesn't mean New Zealand has discovered more gas or that domestic production is increasing. Gas production is continuing to decline, and the country will need to manage this as its energy needs evolve.
No. For most smaller businesses, there is no immediate need to stop using natural gas because of Methanex's closure or concerns about declining domestic production.
Smaller businesses use relatively modest volumes of gas compared with major industrial users such as Methanex.
Natural gas continues to be delivered safely and reliably through the Firstgas network. Businesses can continue using their existing gas appliances and equipment while considering their longer-term energy needs as part of normal business planning.
Not necessarily. While reduced demand may ease some pressure on gas availability in the short term, this doesn't automatically translate into lower prices for businesses.
Gas prices are influenced by several factors, including supply contracts, production costs, demand, network charges and retailer costs.
The impact on individual businesses will depend on their gas supply arrangements and pricing structures.
Methanex's closure is expected to provide some breathing room in the gas market, but the outlook for winter 2027 will depend on several factors.
These include how much gas is produced and available, electricity demand and the availability of renewable electricity generation.
Gas remains important for both direct users, including businesses and households, and electricity generation during periods of high demand.
New Zealand needs more renewable electricity generation, but it also needs reliable energy sources that can respond when renewable generation isn't sufficient.
Gas-fired electricity generation provides flexibility during periods of low wind, low hydro storage or high electricity demand.
Gas also continues to supply homes and businesses directly, supporting activities such as heating, hot water, cooking and industrial processes.
It's not a choice between gas and renewables. Both have roles to play in maintaining a reliable energy system as New Zealand transitions towards lower-emissions energy.
With Methanex using less gas, more may be available for electricity generation and other users in the short term.
However, Methanex has also played an important role in supporting the electricity system by reducing its own production and making contracted gas available during periods when electricity demand was high or supply was constrained.
Its closure changes how gas is used in the market but doesn't remove the need for flexible electricity generation.
Liquefied natural gas (LNG) is being considered as a potential back-up supply to help manage the longer-term decline in domestic natural gas production.
Methanex's closure may ease pressure on gas availability in the near term, but domestic production is still expected to tighten over time.
The Government has been exploring an LNG import facility that could be available from around 2028 to help support energy security, particularly during periods of high demand or constrained supply.
Questions about the Government's LNG procurement process should be directed to the Ministry of Business, Innovation and Employment (MBIE).
Methanex has been a major industrial employer and contributor to the Taranaki economy.
Its closure has significant implications for local employment, businesses and the wider regional economy. It also raises broader questions about New Zealand's ability to retain energy-intensive industries and attract future investment.
While reduced gas demand may provide short-term relief for other users, the loss of a major industrial business is not a positive outcome for New Zealand.
New Zealand's domestic natural gas production is declining, and the way gas is used across the economy is changing.
In the near term, gas will continue to play an important role in supplying homes and businesses and supporting reliable electricity generation.
Maintaining energy security will require a combination of domestic gas supply, flexible generation, renewable energy, storage and potentially additional sources of gas.
For businesses, the important thing is to stay informed and consider future energy needs when making longer-term investment and equipment decisions.