7Economic significance of <strong>Taranaki</strong> to the nationStatistically <strong>Taranaki</strong> has a small populationand business base (circa 2.5 percent ofNew Zealand total). However, thesemeasures fail to accommodate the strategicimportance of the region to New Zealand’scurrent and future economic development.<strong>Taranaki</strong> is home to the nation’s commercial discoveriesand the production of its oil and gas resources. Royaltiesfrom this activity are provided to the Government andthey pay for services that all New Zealanders can benefitfrom ($432m in 09/10). Within the region is also anextensive system of infrastructure and capability thatsupports upstream and midstream industry. <strong>The</strong> region’sinfrastructure includes gas production and storagefacilities, Port <strong>Taranaki</strong>, and the pipelines that transportgas throughout the north island. Feedstock includesMethanex and Ballance Agri-nutrients, and these aresignificant companies within the region that exist in NewZealand because of the availability of local gas. Fertiliserand urea made in <strong>Taranaki</strong> adds to the productivity ofNew Zealand’s farming industry.Methanol, along with the oil from <strong>Taranaki</strong>’s fields, is asignificant export earner for the nation. <strong>The</strong>ir presence,combined with the proven and developed reserves of<strong>Taranaki</strong>’s fields, create a more attractive investmentproposition for international explorers to come toNew Zealand.<strong>The</strong> energy sector supports four power stations withinthe region and supplies gas to others (including Huntlyand Otahuhu). <strong>The</strong>re is also the soon to be completedLPG production facility within the region. <strong>The</strong>se facilitiessupply to commercial and residential end users.<strong>Taranaki</strong>’s oil and gas industry is thus a crucial player inensuring the supply of energy that supports economicgrowth in New Zealand.<strong>The</strong> <strong>Taranaki</strong> region is the operating base for most of theE&P companies as well as the supply chains that supportthe industry. <strong>Taranaki</strong> accounts for around 3,560 of the3,730 FTEs directly employed in the industry. <strong>The</strong>se arehigh calibre skilled individuals that add to New Zealand’sprofessional, engineering and scientific talent and theirprojects attract new technologies to the nation.<strong>The</strong> concentration of O&G activityin <strong>Taranaki</strong> is a key strength for theNew Zealand O&G industry and pivotal tothe nation’s economic agenda. Arguably,no other industry has the same potentialto radically transform New Zealand’seconomic and social well-being as the oiland gas industry may do, if the anticipatedreserves are success<strong>full</strong>y realised anddeveloped. And the nation needs <strong>Taranaki</strong>to help make this happen.To achieve transformation, New Zealand mustsuccess<strong>full</strong>y attract exploration investment from aglobally competitive arena.Whilst the Government may promote the nation’spotential prospectivity and user-friendly policies,<strong>Taranaki</strong> reaffirms to the potential investor theexistence of New Zealand’s proven reserves, developedinfrastructure, O&G capability, and systems. This reducesthe risk and enhances the attractiveness of New Zealand’sproposition. ‘Brand <strong>Taranaki</strong>’ becomes inextricablylinked with Brand New Zealand (O&G), as <strong>Taranaki</strong> isrecognised globally as a region capable of supportingO&G exploration and activity within New Zealand. Oftenit is not the country that is the focus within O&G globalcircles, but its prime O&G zones.<strong>Taranaki</strong> will thus play a critical role in any future activityof the O&G industry in New Zealand. <strong>The</strong> industryexpertise and infrastructure that reside in <strong>Taranaki</strong>will attract and support O&G activity in New Zealandregardless of where it occurs, and will enableNew Zealand to capture a greater share of theeconomic activity that the industry generates.<strong>The</strong> experiences of <strong>Taranaki</strong> can beshared with the country’s emergingO&G regions, and its skills leveraged.As the industry grows in New Zealand, local businesseswill have increasing capability to secure project workoffshore, thus continuing to build New Zealand’s exportdevelopment. New Zealand will achieve its growthaspirations of more jobs, higher skills, wealth creationand export development.72<strong>The</strong> <strong>Wealth</strong> <strong>Beneath</strong> <strong>Our</strong> <strong>Feet</strong>
Changing the way we look at <strong>Taranaki</strong><strong>Taranaki</strong>Home of all NZ’s O&G fields,infrastructure, production, processingPatekeplants and industry supply chain.AmokuraTui FPSOGas FieldOil FieldPower StationPetrochemical PlantProduction StationPipelinesRoadsMoturoaPort <strong>Taranaki</strong>New PlymouthOaonuiKaimiroWindsorAmmonia UreaNgatoraRadnorPohokuraMangahewaTurangiTCC / StratfordKapuniKapuni / Maui pipeline to:AucklandMotonui(Mx)Urenui / OhangoWaitara (Mx)ChealMcKeeKahiliTariki / AhuroaWaihapa / NgaereMaui AInahaKiwi CogenMaui BRimuKauriKupe PlatformKapuni pipeline to:Palmerston NorthHawkes BayWellingtonMaari Platform + FPSOManaiaKm0 10 20 30 40<strong>Taranaki</strong>’s unique proposition to the nation:Current contribution:••Royalties: $432 million p.a. - to pay forservices that benefit all New Zealanders••4th biggest Export earner: Oil/Methanol••Centre of NZ’s O&G talent (75%): Uniqueexpertise, technologically advanced,globally connected••Security and provision of NZ’s energy supply--Households--IndustryFuture economic transformation enabler:••<strong>Taranaki</strong> is NZ’s key asset in the bid tounlock NZ’s petroleum potential - achieveeconomic transformation••A proven O&G region••Brand <strong>Taranaki</strong> (O&G) = Brand NZ (O&G)••Reduces risk for the O&G investor••Adds weight to NZ’s offering.<strong>The</strong> <strong>Wealth</strong> <strong>Beneath</strong> <strong>Our</strong> <strong>Feet</strong>73
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