New Zealand needs to better manage the decline of domestic gas, to avoid further costly closures of commercial and industrial businesses, according to a new report by a global consulting firm. The four big power generator-retailers commissioned the Boston Consulting Group report. Commercial and domestic gas customers are experiencing significant price rises, as the country’s pipeline of natural gas dwindles.
Last year several large industrial plants shut down, partly as a result of this, with the loss of hundreds of jobs. The BCG report urges the sector to accelerate further drilling of all existing gas fields and for the government to bring back a fund to support businesses to transition to biomass or electricity by 2030. It says not properly managing the gas decline could cost the economy 7.3 billion dollars per year. Richard Hobbs is partner at BCG and lead author of both this report.
Photo: Supplied by BCG Report
