Gas industry – facts at a glance

Updated 27 March 2020 1. Gas Consumers

Approximately 291,000 consumers:

Residential 275,000 Small Commercial 10,000 Large Commercial 5,000 Large Industrial 300

Source: Gas Registry

2. Gas Use by Consumer Group (for calendar year 2019)

Total annual consumption approx 178 PJ Industrial 34.1% 26.7% Non-energy use 27.5% Commercial 7.3% Residential 3.7% Agriculture/forestry/fishing 0.7%

Source: Data tables for gas - MBIE

3. Regional Gas Use by volume (for calendar year 2019)

Region ToU Non ToU Reticulated Direct Total % of ICPs ICPs (TJ) (TJ) (TJ) total Auckland 183 110,318 15,064 2,300 17,364 7.08% Bay of Plenty 32 15,189 3,776 806 4,582 1.87% Gisborne 8 3,154 412 0 412 0.17% Hawke’s Bay 34 5,185 2,196 18 2,214 0.90% Manawatu/Whanganui 51 30,028 2,974 24 2,998 1.22% Northland 8 1,185 139 4,863 5,002 2.04% 29 19,518 1,528 150,388 151,916 61.93% Waikato 68 37,779 3,828 52,687 56,515 23.04% (incl Hutt Valley, 48 68,839 4,296 0 4,296 1.75% Kapiti)

Notes: Northland includes NZ Refinery Auckland includes NZ Steel Waikato includes Huntly PS, Te Rapa cogen/Fonterra Taranaki direct includes Methanex, Ballance ammonia/urea, Stratford PS, Stratford peaker station Source: Gas Registry

1 4. Gas Production (for calendar year 2019)

Gas producing fields = 15 Main fields (which will have the most effect on supply if production is lost): Pohokura 34.8% (commenced production in 2006) Mangahewa 19.2% (commenced production in 2001) Maui 12.4% (commenced production in 1979) Kupe 15.6% (commenced production in 2009)

Other producing fields: Turangi (5.0%), Kapuni (5.1%), Maari (2.3%), Kowhai (2.1%), McKee (1.9%), Ngatoro (0.8%), Rimu/Kaui (0.2%), Sidewinder (0.1%), Others (0.7%)

Source: Data tables for gas - MBIE

5. Gas Transmission

Two open access, high pressure pipeline systems transmit gas. Both are owned by Limited. • The 309 km (of mostly 750mm diameter pipe) extending from Oaonui, in south west Taranaki, to Huntly. Known as the ‘Maui pipeline’ and formerly owned by Maui Development Limited (until June 2016). • A total of 2,196 km (of mostly 100mm to 200mm diameter pipes) generally radiating from the Maui pipeline and delivering gas throughout the North Island. This system was formerly owned by (until April 2016)

6. Gas Distribution

There are four gas distribution network owners: Distributor Total Length Region Active % of total (km) Connections active (as at 1 April connections 2020) Vector 6,399 Greater Auckland 110,572 37.93 First Gas 4,523 Northland, Waikato, Bay 62,929 21.59 of Plenty (including Rotorua, Taupo), Gisborne, Kapiti 6,383 Greater Wellington, 108,060 37.07 Hawke’s Bay, Manawatu, Horowhenua, Taranaki Gasnet 662 Wanganui, Rangitikei 9,737 3.34 Nova 1001 Wellington, Porirua, Hutt 226 0.08 Valley, Hastings, Hawera, Papakura, Manukau City. Total 17,967² 291,524 100 1 Nova is not subject to statutory disclosure requirements. This figure is from the Commerce Commission Gas Industry Final Report in 2004. ² Total of open access networks only. Excludes Nova.

Source: Gas Registry

2 7. Gas Retailers

There are 14 retail brands:

Retailer Active ICPs % of Active % of total as at 1 May ICPs allocated gas 2019 volume

Genesis Energy 91,933 31.64% 27.51% 65,580 22.57% 9.19% 47,300 16.28% 3.32% 33,975 11.69% 2.89% Nova Energy ( of ) 34,465 11.86% 31.98% Energy Online (subsidiary of Genesis) 11,562 3.98% 0.79% Pulse Energy 5,069 1.74% 0.31% Switch Utilities 275 0.09% 0.21% On Gas (subsidiary of Vector) 101 0.03% 13.05% Greymouth Gas 8 0.00% 10.73% Hanergy 51 0.02% 0.00% EnergyclubNZ 281 0.10% 0.01% Scholarship NZ 1 0.00% 0.00% Megatel 594 0.20% 0.02% 290,601 1 1 Notes: Greymouth and On Gas supply only larger commercial and industrial consumers. % volume = share of allocated volumes for April 2019 Source: Gas Registry

Allocated volume includes gas consumed by industrial, commercial and residential customers, but excludes gas volumes for consumers connected directly with the transmission system. Direct connections generally include major industrial sites such as thermal power stations, petrochemical plants, the oil refinery, pulp & paper operations and dairy factories. Allocated gas represents about 19 percent of total gas consumption. Direct connect proportions are (the average for the calendar year 2019):

Electricity Generation 21% Petrochemicals 66% Processing (eg dairy, steel, 6% wood, refining etc) Gas storage 1% Bypass gas gates 0%

Source: Gas Registry

3 Gas Pipeline Outage History

New Zealand’s main gas transmission systems traverse some of the North Island’s most rugged terrain and have a strong reliability record over their 30 to 40 years of operation.

In that time, there have been five significant outages, two of them caused by third party damage, one by severe flooding and two by landslips.

• The rupture of the Kapuni North pipeline at Pukearuhe on the North Taranaki coast in 1977, due to a slow moving landslip.

• The rupture of the Kapuni North pipeline near Inglewood, Taranaki, circa 1985, due to being struck by a mechanical digger.

• The rupture of the Kapuni South pipeline at Himatangi in the lower North Island in 2003, due to being struck by a bulldozer.

• The forced shutdown of the Hawke’s Bay pipeline at Awapuni in 2004, when it became detached from a bridge that was swept away during severe flooding in central and lower areas of the North Island.

• The rupture of the Maui pipeline at Pukearuhe, near the 1977 Kapuni pipeline failure site, in 2011, due to a slow-moving landslip.

• The planned outage of the Maui pipeline at Tongaporutu in 2018, to create a bypass so that a defect discovered in the pipe could be assessed.

The longest outages, 5-6 days, have been Hawke’s Bay (2004) and Maui (2011) – (note: duration of the 1977 Kapuni pipeline failure at Pukearuhe not known)

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