We know there’s been a lot of conversation about gas lately, and with so much information circulating, it can be difficult to know what it all means for homes and businesses across New Zealand.
New Zealand’s domestic gas supply is declining over time, which means the market is becoming tighter and prices are increasing, similar to electricity and other forms of energy. However, this does not mean homes and businesses will suddenly lose access to gas.
Gas continues to be delivered safely and reliably every day, and Firstgas remains focused on keeping it that way.
Sourced: Rinnai gas fireplace
What this means for households and businesses
Almost 300,000 homes and businesses across New Zealand use natural gas for cooking, heating and hot water, and together residential users account for only around 8% of New Zealand’s total gas demand. Small and medium-sized businesses account for around a further 8%.
Most natural gas in New Zealand is used by large industrial users and major processors. This means homes and small businesses are a comparatively small part of the overall system and are expected to continue having access to gas for many years.
For most residential and business customers, the biggest change over time is likely to be price, rather than availability. Rising production costs, inflation and changes across the wider energy market are all expected to continue putting upward pressure on energy prices over time.
Source: iStock image
Planning ahead, not panicking
For homeowners and businesses already using gas, there is no need to rush into big decisions. The most practical and cost-effective time to think about energy choices is when:
- renovating
- building a new home or premises
- replacing appliances at end of life
Planning ahead gives people time to understand their options, compare costs and consider what works best for their household or business.
We also recognise New Zealand’s energy system is changing. That’s why its important people have clear information so they can plan ahead and make informed decisions over time, rather than feeling pressure to rush into important decisions.
Why gas still matters
Gas continues to play an important role in New Zealand’s wider energy system. In addition to being used in homes and businesses every day, gas also supports electricity supply security and industrial activity, particularly for high heat processes such as steel, glass and cement manufacturing. Gas plays an important role during winter and other peak electricity demand periods, or when renewable generation from hydro lakes, wind and solar is lower.
As New Zealand’s energy system evolves, having a range of energy options will remain important. This includes electricity, gas, renewable gas and potentially LNG in the future.
A more diverse energy mix helps support reliability, reduces pressure on the wider energy system during periods of high demand, and gives households and businesses more flexibility over time.
Our role at Firstgas
Firstgas continues to invest in and maintain the gas network so we can deliver gas safely and reliably for years to come. Our focus remains on supporting customers through New Zealand’s energy transition in a practical and balanced way.
