How much will gas cost you?

New Zealand’s National Electricity Market Authority has said it expects to be able to deliver 1.7 gigajoules of gas by 2020.

The NEMA has forecast that if it meets its target, New Zealand will have enough gas for the next 30 years.NEMA chief executive Andrew Rennie said the organisation was targeting “a low cost gas solution for New Zealand”.

“This is a high cost solution that is delivered through the New Zealand Gas Authority,” he said.

“The NGLA is also delivering this low cost solution through a competitive bidding process.”

Mr Rennies forecast that New Zealand could reach the target within 15 years.

“By 2020, New York City will have the equivalent of four to five thousand homes connected to the NGLF gas grid.”

We are confident we will be able achieve our goal by that date,” he added.

Mr Rynnes said the NEMP was confident that the NGT would be able provide enough gas to meet the NAPL target.”

If we do achieve that target we will have around 200 million litres of gas, enough for around three million homes,” he explained.”

There are other options that we can consider, but it’s clear that we need gas to supply the NGNL [New Zealand Government’s national energy grid].

“The other option is a mix of gas from other sources.”

Mr Nynnes had previously said that New York was “one of the most successful” and “totally competitive” markets for gas in the world.

“Gas is the single largest component of New Zealanders electricity supply and will continue to be the single major component of the electricity market for the foreseeable future,” he had said.

Nemes own-source power purchase agreement with Southern Gas has been in place since July this year.

Mr Nymes announcement came ahead of a deadline of Thursday for Southern Gas to supply New Zealand with gas for at least the next 15 years, with no additional costs incurred.

Mr New Zealand is one of just four countries to be part of the “grand bargain” that Southern Gas and NEMEA struck with the European Commission in July this, to bring down emissions of CO2 from the electricity sector.