New Zealand Government plans to coinvest in new gasfield projects

The government of New Zealand announced its budget for Thursday that it will co-invest with other countries in developing new gas fields. This is to encourage investment in the sector following the lifting of the offshore exploration ban.

Shane Jones, Minister of Resources, said that the government had set aside NZ$200,000,000 ($118.60,000,000) for four years as a contingency to co-invest in new gasfields.

The minister added that this investment shows the government's willingness to invest up to 15% in the development of new gas fields.

Jones stated that "we are already feeling the pain" of a limited supply.

"We have shown potential for significant development of gas and while investors are still interested, we must show that their commitment won't be a waste exercise," he said.

New Zealand's conservative ruling coalition lifted a ban that had been in effect since 2018 on offshore oil-and-gas exploration and called for increased investment in the sector.

New Zealand's Budget set new spending at its lowest level in a decade for the current fiscal period, while warning of an "economic shock" from the global trade war.

(source: Reuters)