Gas importers say LNG is the answer to Australia's shortfall

Proponents of importing LNG as the answer to a possible energy shortfall have been putting their case to a largely sceptical industry audience in Auckland. It is still unclear how the country will cover a possible energy shortfall when the giant Maui gas field finally runs out in about 4 years time and LNG is being promoted as one solution.
LNG is gas which is extracted and then chilled into a liquid form, shipped in tankers and then converted back into gas at 600 times its liquid volume. A major source of the gas lies off the north western coast of Australia in a giant field being worked by that country's biggest explorer, Woodside Petroleum.

David Maxwell, director of Woodside's gas business, told the Petroleum Conference in Auckland that LNG would be ideal for New Zealand. But he said that limited investment in facilities means it could not happen quickly.
Peter Griffiths, managing director of BP New Zealand, also advocates imported LNG as a way of removing any doubt about energy supplies. LNG use is growing strongly worldwide because of its ability to be shipped like oil. It now accounts for 25 % of global gas trading between countries. But the idea has not found favour with local players in the energy market.

Gas explorers and producers are still confident of bringing the new Pohokura and Kupe fields on stream in time. They also say that more reserves are to be found.
The government announced that it would be opening up new areas off the North Island's west coast for exploration, believing significant reserves could be there, which could avoid the need to commit to long term imported fuel sources. Other local explorers such as Todd Energy say there is no need to panic about gas supplies. They say that LNG appears to be most in favour with those selling it.

Large power generators such as Contact and Genesis are looking at LNG, but Woodside's David Maxwell noted wryly that some are using it as a negotiating tool to frighten domestic gas suppliers.
Contact and state-ownedMighty River Power announced they would each contribute $ 20 mm to a gas exploration fund they hope will speed up the search for new gas reserves. They are seeking support and money from other gas users.