New Zealand Grants First Offshore Gas Permit to EnZed Energy

The New Zealand Government granted Australian explorer EnZed Energy a 12-year petroleum exploration permit to operate in the Taranaki Basin. This marks the first new offshore permit issued since the coalition government under Prime Minister Christopher Luxon overturned a ban previously imposed by the administration of Jacinda Ardern.

EnZed Energy will execute a staged exploration program, beginning with seismic and geological studies, across a 546-square-kilometer area known as the Kaheru prospect. The decision follows a 23 percent drop in natural gas reserves to 731 petajoules as of January 1, 2026, the lowest level in over two decades. Government officials state the move is necessary to prevent industrial gas shortages and support power generation during periods of low hydropower output.

Minister for Resources Shane Jones described the permit as a major milestone and a signal that investor confidence is returning. John Carnegie, Chief Executive of Energy Resources Aotearoa, called the approval a critical first step to prevent higher energy prices and reduce reliance on coal. However, Carnegie warned that the government must increase the speed of processing other permits to avoid hindering the sector.

Other oil and gas firms are currently applying for rights ahead of the November election. The opposition Labour party has indicated it intends to reinstate the exploration ban if it returns to power.