Shane Jones: Resources Minister on the first two projects funded by the Gas Security Fund

0:00So the money from the $200 million gas security fund is about to flow. Todd Energy is going to get $23.5 million for a couple of projects in Taranaki. They put in ten of their own. In theory, they unlock almost 20 petigules of extra gas over the next five to nine years, Shane Jones is in charge of all this. And he's back with us this morning. Hi, how's the ratio worked out of you, given 23 and they put in 10? How's that work? Well, the real pressure is, can we entice anyone to come back into the sector, given what they read the news, they watch the media and in the event there's a change of government. There's going to be a cancellation of the whole sector. So there needs to be incentives and encouragement for them to come back in. I'm happy that Todd are spending some of their own money and I'm happy that our cabinets mandated me to use the taxpayer purse to ensure we don't run out of gas. So those comments you made yesterday, you want to use all 200 by election time? Is that real? Well, what is authentic is the fact that the Supreme Court copying the Supreme Court of the UK last November, December made a decision and made it

1:02incredibly difficult in New Zealand for us to use our indigenous gas vessels. Resources, unless we go through an ideological jungle gym, our officials have guided us through that and obviously we're not going to do anything reckless or take the advice of the officials as a chap called Andy Knighties, the most knowledgeable guy in New Zealand on the oil and gas. He's guiding us and other cabinet ministers will sign it off along with myself. The 20 petijules is that real or a hope? I remember a famous Prime Minister using the term aspirational. Look, I can only go on what we told geologically and there's both the potential and the productive and we've been given by our geological advisors. That is an upper limit but things are sadly dire. We are still attracting interest from overseas and domestically to expand our own gas sector. But let's be straight with each other on this programme. There is an element in New Zealand's political ideological culture who feels that New Zealand

2:07should not have a natural gas industry. I don't belong to that tribe of Luddites. No, indeed not. But the methanex thing last week, the decision round that loosens up a little bit of gas around the place. This may or may not work with throwing money at it. Is there a risk profile for you? That you're backing something that, you know, as much as you may want it, it doesn't work because there is no gas there. Well, no, we're advised that there is gas there. But we're also advised that people have been unwilling and will remain unwilling on their own to continue to invest and take a risk if there's some prospect that the entire sector will be closed down again. Which the next does. Well, methanex provides a short term fill-up. We've got to look at some storage work with the current holders of those rights. And sadly, until such time, we get a quality of, I don't know, direction and clarity after the election. And we know where we are in relation to these Luddites who are ideologically trying to pollute our capacity to make money and grow in the country.

3:07And good to talk to you. Appreciate it, Shane Jones, who's the Minister of Resources. And that goes back to that conversation that we've had a loss. But more recently, that you need some sort of pipeline, no pun intended, on major projects. And despite the fact we all agree that we want some sort of pipeline on major projects. In that particular area, do not have one. For more from the Mike Horsking Breakfast, listen live to News Talk's SB from 6 AM weekdays or follow the podcast on iHardRadio.