This is the gas that’s needed to generate power, alongside the other ways we generate power in this country - hydro, coal and wind.
It’s going to cost somewhere north of $1 billion, and the Government reckons it will be up-and-running in one-to-two years’ time.
I think it’s dreaming on the timeline front. I also think Chris Hipkins is dreaming when he says $1 billion would buy a lot of solar panels.
Because even though Energy Minister Simon Watts banging-on about us paying less for our electricity - or more to the point, not paying a truckload more for electricity - this isn’t actually about you and me.
Unless you run a big manufacturing or processing plant - in particular one of these big plants or factories that have been struggling with power prices. This is about industrial electricity supplies.
This talk about importing gas first surfaced a couple of years ago when factories were actually closing because of high power prices.
The big power companies looked into it, and they wrote a report for the Government which essentially said that it wasn’t as straightforward as it sounded.
They looked into the practicalities of importing gas and they said we could do it, but there are a few things to think about.
The main ones being the price tag and how long it would take to get it happening.
They said last year that it could be done cheaper than $1 billion - for around $200 million - but the gas would be 25 percent more expensive, because the cheaper option would use existing facilities.
However, there wouldn’t be the same amount of storage and so we couldn’t buy as much in one hit and so we’d pay more for it.
They also said it wouldn’t be an overnight fix. It would be about four years before we started to see the benefits.
Another main point in this report was that we could spend the money and wait for it all to come online, but there could be years when we don’t even need the extra gas.
But that’s a bit like pouring money into a fire alarm and sprinkler system and not using it. You know it’s there and it gives you security.
That’s how I see this gas importation business. It’s a back-up. And so, what if it isn’t needed all the time?
John MacDonald is the Canterbury Mornings host on Newstalk ZB Christchurch. This article was first published HERE
I think it’s dreaming on the timeline front. I also think Chris Hipkins is dreaming when he says $1 billion would buy a lot of solar panels.
Because even though Energy Minister Simon Watts banging-on about us paying less for our electricity - or more to the point, not paying a truckload more for electricity - this isn’t actually about you and me.
Unless you run a big manufacturing or processing plant - in particular one of these big plants or factories that have been struggling with power prices. This is about industrial electricity supplies.
This talk about importing gas first surfaced a couple of years ago when factories were actually closing because of high power prices.
The big power companies looked into it, and they wrote a report for the Government which essentially said that it wasn’t as straightforward as it sounded.
They looked into the practicalities of importing gas and they said we could do it, but there are a few things to think about.
The main ones being the price tag and how long it would take to get it happening.
They said last year that it could be done cheaper than $1 billion - for around $200 million - but the gas would be 25 percent more expensive, because the cheaper option would use existing facilities.
However, there wouldn’t be the same amount of storage and so we couldn’t buy as much in one hit and so we’d pay more for it.
They also said it wouldn’t be an overnight fix. It would be about four years before we started to see the benefits.
Another main point in this report was that we could spend the money and wait for it all to come online, but there could be years when we don’t even need the extra gas.
But that’s a bit like pouring money into a fire alarm and sprinkler system and not using it. You know it’s there and it gives you security.
That’s how I see this gas importation business. It’s a back-up. And so, what if it isn’t needed all the time?
John MacDonald is the Canterbury Mornings host on Newstalk ZB Christchurch. This article was first published HERE
10 comments:
We could also build more dams, but we would need to then get real about the truth whether or not taniwhas actually exist.
The governments pens for hire are in fill swing with their "expert opinions".
You wonder why the NZ government / gentailers didn't employ energy experts to review NZ's electricity generation options. Oh hang on they did....
A LNG terminal was rejected by seperate.and independent horizon, and UK consultants Gas Strategies, studies as prohibitively expensive.
The horizon report also made recommendations to lower gentailers exrraordinary profit margins but 8/10 Horizon recommendtions were mysteriously rejected by Simon Watts and Nicola Willis.
And here you have Mr McDonald.touting a billion dollar terminal without once citing either of those studies.
You couldnt make this life destroying nonsense up.
Trust you're sleeping restfully John!
Isnt Ardern to blame with her gas and oil exploration ban?
Nice industry mouthpiece opinion article from a fossil fuel adherent. The world is changing but not on National’s middle management watch!
Important gas is not a choice - it is a necessity, brought about by a lack of vision and strategy. Far from ideal, expensive, but one real option to maintain energy supply. Let’s not forget who took the other options away by banning gas exploration! Without sufficiency and reliable electricity we will slowly turning into another small island at the bottom of the world.
As it is touted as a backup source for short time electricity shortage, why not use our own stockpiled coal until our own natural gas situation is really known (might find some more if exploration allowed again) The greenhouse gas emissions difference between our good quality coal and LNG would be minimal if the energy cost of liquifying, shipping and storage costs are taken into account? Unusual for me, but I'm with Chloe on this one!
Indonesians coal or Australian gas…what about kiwi hydro or low solar kiwi wind? Nah that’d be crazy, better to throw the billions after a sunsetting industry. National government innovation at its best!
Ahh the old deflect by blaming Labour trick anon 312.
National had 2 years to fix the Helen Clark advised Ardern disaster. National also had 2 years to investigate the $74.4b covid fraud and the source of Ardern's mysterious post politics wealth.
Yet Luxon has done nothing.
Even if Ardern hadn't stupidly stopped gas and oil exploration, there is a very good chance no gas would have been found.
In the mean time.Luxon promised ro reduce NZ 's extraordinarily high cost of living, caused by illegal price colluding Australian grocery, banking, energy, and insurance cartels.
Yet when presented with solutions to the strangely bloated gentailer profit margins and prices, willis and Watts rejected 8 out of 10.
Now, you can't blame that on Ardern. Even if Ardern isnt rotting in a jail, like she most definitely should be.....
Isnt that right Mr Luxon?
Reliance on renewables for generating electricity results in demand exceeding supply in an unpredictable way and the resulting power cuts may be widespread and prolonged. Spot prices rocket - the effect on big industrial consumers is financially damaging.
To meet demand at those times, the power shortage needs to be filled quickly. It takes too long to fire up a boiler with coal or gas to get the steam necessary to turn a turbine to power up a generator. But a gas turbine can be powered up very quickly and connected to a generator and this will fill the power "gap". Likewise, it's easy to power down once the situation stabilizes.
This is why doing nothing or relying on coal isn't an option. Stability of supply and affordability of electricity = jobs, economic growth, warm homes and gizmos that work 24/7.
So the LNG plan is a bitter pill but one we need to take unless someone has a better idea.
It’s gonna take this country a hundred years to rebuild from what Ardern did
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