Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Increased Competition Good For Gas Industry Future

Fletcher Challenge Energy supports the call by Todd Energy for greater regulation of the gas pipeline companies, as it will help to secure the industry's future.

Fletcher Challenge Energy's New Zealand Chief Operating Officer, Dr Lloyd Taylor, said further regulation of the pipeline businesses is required to achieve greater competition in gas wholesaling and retailing.

"A more competitive market would not only bring gains for wholesale and retail customers but would be good for the future of the industry as a whole. Without a competitive and open environment the incentive for gas exploration risk capital investment, necessary to discover new gas reserves, is absent," Dr Taylor said.

Fletcher Challenge Energy supports the separation of pipeline ownership from other business activities, including trading activities and gas distribution. This would increase transparency of pipeline operations, reduce incentives for gaming by pipeline owners, and lead to an increase in competition in gas wholesaling and retailing.

However, Dr Taylor said that Fletcher Challenge Energy was not convinced that pricing regulation was the optimal solution in the New Zealand environment.

"We are open-minded on this aspect of regulation but believe that ultimately the clear separation of pipeline ownership from other gas business activities is the primary pre-requisite for a competitive gas industry."

Fletcher Challenge Energy is the country's leading oil and gas producer whose participation in the gas transmission market is limited to its part ownership of the Maui pipeline through the Maui joint venture. The company supplies some 80 per cent of New Zealand's gas and 40 per cent of total hydrocarbons.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: