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What will the Government achieve by setting aside $200 million to try and get a small stake in a new offshore gas field? Associate Energy Minister Shane Jones announced the move in the budget last week saying the Crown would take a 10 to 15 per cent stake in a new gas field to help feed the domestic market.
While electricity generators have purchased gas from the country's biggest user, Methanex, for domestic supply, other gas users such as schools and hospitals are unable to get supply contracts of more than a year, and prices are going up for everyone. But new gas fields are a huge investment, and the sector has struggled to meet demand.
Mac Beggs has worked on oil and gas exploration for decades in New Zealand - he says there are two, maybe three wells that have potential.
