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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Relaunching 14 International Routes In 16 Days

Air New Zealand is gearing up for the busiest July in two years with the relaunch of 14 international routes in 16 days... More>>

Inland Revenue: Update On Hidden Economy Real Estate Campaign

The Inland Revenue campaign focussing on the real estate sector has resulted in a drop in the amount of private expenses claims being made... More>>

Westpac: Consumer Confidence Plummets To Record Lows As Financial Pressures Mount

The Westpac McDermott Miller Consumer Confidence Index dropped sharply in the June quarter, falling 13 points to a level of 78.7... More>>

BusinessNZ: NZ Economy - Prevailing Headwinds
The latest BusinessNZ Planning Forecast reveals business and consumer confidence is low, with factors at home and abroad hampering our recovery... More>>

Specialist Cheesemakers Assn: Shared Cheese Heritage Should Be Shared Not Stripped

As the EU-New Zealand FTA advances New Zealand cheesemakers are urging both Governments to recognise and celebrate the shared cheesemaking heritage that exists between European countries and New Zealand... More>>

Download Weekly: $60 million for more rural connections
David Clark, the digital economy and communications minister, announced the government will spend $60 million to further improve rural connectivity over the next few years... More>>