Major Users and the Retail Sector
Total observed gas consumption (including electricity generation, co-generation, other transformation and petrochemical production) amounted to 191 PJ in 2016. Around 80% of gas is used as a transition energy for electricity generation and petrochemical production.
Electricity generation (including co-generation) accounted for about 26.5% of New Zealand’s total gas consumption in 2013. Contact Energy Limited (Taranaki Combined Cycle and Stratford Peaker Station), Genesis Power Limited (Huntly, including the e3p combined cycle plant), and Nova (McKee Peaker Plant) are the main thermal electricity generators in New Zealand using natural gas.
About 51% of gas produced in New Zealand is used either as a feedstock or process gas for producing petrochemical products - methanol and urea fertiliser.
In 2016, the industrial sector accounted for 15% of total gas consumption. Major users supplied directly from the transmission system include Methanex, New Zealand Steel, OGI, Degussa Peroxide, Fonterra Co-operative, NZ Refinery Company, and Tasman Pulp and Paper. Many smaller industrial users are connected to gas distribution networks.
Gas Consumption by Sector for 2013
|Petrochemicals Feedstock Gas||30.5%|
|Petrochemicals Process Gas||20.5%|
Retailers and retail gas users
Retailers compete to sell natural gas to smaller gas users (including residential households, hospitals, and factories) who do not purchase directly from gas producers. They also pay the transportation tariffs associated with transmission and distribution so that they can offer a convenient, bundled product to retail customers.
There are 10 retailers operating in New Zealand. They are: Contact Energy, Genesis Energy (and its subsidiary Energy Online), Greymouth Gas, Mercury Energy, OnGas, Nova Gas (part of Todd Corporation), Pulse Energy, Switch, and Trustpower. Of these, OnGas and Greymouth Gas supply only commercial and industrial customers.