WELLINGTON, Oct. 30 (Xinhua) -- The Petroleum Exploration and Production Association of New Zealand (PEPANZ) is welcoming a new report released on Monday showing the promising potential of developing natural gas in the South Island.
The report commissioned by New Zealand Oil and Gas says the discovery of a gas field off the coast of the South Island could be "an economic game-changer," earning 32 billion NZ dollars (22 billion U.S. dollars) in royalties and taxes over the life of the field, PEPANZ Chief Executive Cameron Madgwick said in a statement.
The Barque prospect is 60 km offshore from Oamaru, and no decision has been made to drill a well yet, Madgwick said. However, the study shows a commercial market for gas could result in industries like methanol, dairy and fertilizer plants establishing themselves around the Canterbury and Otago regions in the South Island.
"This would have a transformational economic impact on these regions," he said, adding that construction alone could create 5,700 jobs per year and add 7.1 billion NZ dollars to New Zealand's GDP.
This option of bringing gas-to-shore could generate 450 million NZ dollars in annual GDP from operations and 700 million NZ dollars each year in government royalties and taxes over the life of the field, the report says.
"It could also have important environmental benefits given that natural gas has half the emissions of coal. By producing and exporting more natural gas we can help New Zealand, and the world, lower its overall emissions," Madgwick said.
He said that there are another four drillable South Island prospects and the economic returns would be expected to be similar or potentially even greater, demonstrating the enormous potential of New Zealand industry. (1 U.S. dollar equals to 1.46 New Zealand dollars)
