WELLINGTON, May 8 (Xinhua) -- Some large gas consumers are expressing concern about their ability to secure gas contracts due to New Zealand's significant reduction in gas production.

According to the Gas Industry Co on Wednesday, there has been a material decline in gas production, leading to significant supply constraints and higher prices for consumers.

There was a 12.5 percent reduction in gas production during 2023, and a 27.8 percent reduction in gas production in the first three months of this year beyond what was projected, said the Gas Industry Co, New Zealand's industry body that works alongside industry and government to co-regulate gas.

"Less gas will also mean more coal will be needed to keep the lights on," said Energy Minister Simeon Brown.

Brown attributed the low production to the last government's policy decisions of disincentivizing investment in gas production, which has seen a dramatic reduction in exploration for new gas resources since 2021, and suppression of maintenance drilling.

Resources Minister Shane Jones said the government will work with the sector to increase production, and introduce changes to the Crown Minerals Act to Parliament this year that will revitalize the sector and increase production.

"New Zealand has abundant natural resources, including energy resources such as natural gas," Jones said, adding that it is a tragedy to leave this abundance in the ground while its manufacturers suffer and its industrial base moves overseas. Enditem

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