9. Oil and Gas Exploration—Gas SuppliesJONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and ResourcesOil and Gas Exploration—Gas Supplies9. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources: Does she stand by all her statements and actions regarding the Government's decision to ban further offshore oil and gas exploration?Hon Dr MEGAN WOODS (Minister of Energy and Resources): Yes. In particular I stand by my statement welcoming the recent news that New Zealand's largest gas user has secured supplies until 2029. It's good to see this level of certainty in the context of the long-term transition we announced in April.Jonathan Young: Does the Minister acknowledge that the data reported to the Ministry of Business Innovation and Employment (MBIE) this year shows that current gas demand can only be accommodated by current supply until approximately January 2020?Hon Dr MEGAN WOODS: The quality-assured data reported in the data from MBIE shows that we have around 10.5 years of gas. This has been the estimate of 2P reserves. This has been the number that it has been for the last 20 years on average give or take a few points. Nothing has changed. The member needs to realise that there is 100000 square kilometres off the coast of New Zealand that is available for exploration. In fact we have the busiest drilling season that Taranaki has seen in years coming up and that member should be pleased.Jonathan Young: Is the member aware that according to the data reported to MBIE this year the 2020 shortfall between what is produced and what is needed is more than the entire consumption of households over the whole country?Hon Dr MEGAN WOODS: The quality-assured data reported to MBIE—the 2P reserves—show that we have 10.5 years of gas reserves left. This is I repeat what it has been on average give or take a couple of percent for the last 20-odd years. Does that member seriously think that Todd Energy would have just invested $100 million in a gas peaking plant that's due to be completed in 2020 if they really believed that was the case?Jonathan Young: Despite the Minister referring to the abstract—SPEAKER: Order! Order! Start with a question.Jonathan Young: Will the Minister despite her referring to the abstract equation of 10.5 years guarantee to New Zealand households schools hospitals and businesses who rely on gas that they will not be hit by massive price spikes—as has happened in Australia—because of domestic gas shortages?Hon Dr MEGAN WOODS: I repeat to that member: this is a long-term transition. We have exploration permits that go out for 30 and 40 years. If that member really thinks we're about to run out of gas in 2020 then he should talk to his boss the former Minister of Energy and Resources Simon Bridges who was obviously asleep at the wheel as the Minister if that's what he was presiding over.Jonathan Young: Will the Minister guarantee to New Zealand households schools hospitals and businesses that rely on gas that based on this data provided to MBIE they will not be hit by massive price spikes?Hon Dr MEGAN WOODS: What I rely on is the quality-assured data supplied to MBIE that shows just like we have for the previous two decades give or take a couple of percent we have 10.5 years of gas in reserve. If there really is to be a shortage this is something that has been building up over the last decade. So that member needs to look to members within his own party because decisions that were made 10 15 years ago are what will have an impact there.Rt Hon Winston Peters: Will the Minister explain in additional to Todd Energy's recent decision what the recent Methanex decision means with respect to this point of not being able to gain supply into the future?Hon Dr MEGAN WOODS: As mentioned in my primary answer that Methanex has just signed a contract through to 2029 what we see is investment decisions being made with the knowledge the sky isn't falling in. I suggest that member and his party with its new-found commitment to climate change may want to consider that too.Jonathan Young: What is the Minister's plan for supplying enough gas to New Zealanders that even though Methanex have signed an agreement with no new gas yet discovered—what is her response if over the next two years of exploratory drilling they prove unsuccessful?Hon Dr MEGAN WOODS: The deal that Methanex entered into through to 2029 is exactly the same kind of deal they have been entering into for the last few years. There is nothing new here. I repeat to that member that all the exploration permits that existed before our announcement exist. That is 100000 square kilometres off the coast of New Zealand that is available for exploration. If there were to be no finds in that then it's a good job this Government has a plan to transition those communities and those people that are reliant on those jobs.