Understanding the future of gas

There is a bit of confusion and misinformation around the future of Gas in New Zealand.

We would like to let our customers know that while gas energy is changing to be more eco-friendly, it’s here to stay. The flame isn’t going out. Kiwi gas users can be confident that the gas they turn on isn’t being turned off and will continue to flow well into the future.

If you’re connected to gas now or thinking about connecting, you can be sure that natural gas and LPG will keep flowing as NZ makes the shift to future low or zero carbon gases.

Gas energy is here to stay

The Climate Change Commission has not proposed a ban on new gas connections from 2025 but instead recommend the government sets a date, once a national energy strategy is developed and there is more clarity around the contribution future gases can make in decarbonising New Zealand’s energy supply.

You can also be confident that you can use any natural gas or LPG appliances in your home for their expected lifetime. Current LPG appliances are fully compatible with BioLPG, and modern gas appliances are already able to run on a blend of natural gas and renewable hydrogen gas (up to 20%) or biogas. New compatible appliances will become widely available as we scale up towards a more renewable gas energy future.

Gas energy is here to stay, but it will be changing. What isn’t changing is the value and benefits you get living in a home energised by gas.

What does the future of gas look like?

Can I still connect to natural gas or LPG?

Yes, you can still connect to both. In its final recommendations to government, the Climate Change Commission has not proposed a ban on new gas connections from 2025 but instead recommend the government sets a date, once a national energy strategy is developed and there is more clarity around the contribution future gases can make in decarbonising New Zealand’s energy supply.

Will natural gas be turned off in the next few years?

No. Natural gas and LPG will continue to be delivered to connected consumers until we’ve fully moved to new low and zero carbon gases, likely to be by 2050. We envisage that future gases such as green hydrogen gas, biogas and bioLPG will start being introduced or blended with existing gases in the next 3-5 years.

Will gas prices increase substantially in the coming years?

Moving to renewable energy is likely to increase the cost of all types of energy. Renewable gases are likely to be more expensive than today’s gas, but gas energy is expected to remain good value and competitive with renewable electricity.

Can I buy a new gas appliance with confidence?

Absolutely. If you currently own an appliance that uses natural gas or LPG, you can have confidence that you’ll be able to use it for its expected lifetime (typically up to 15 years). Blending gases will be an important part of our journey as we scale up to low and zero carbon gas energy, and most modern gas appliances are already able to run on a blend of natural gas and renewable hydrogen gas (up to 20%) or biogas. Newer compatible appliances will become widely available as we move towards a more renewable gas energy future.