Welcome to
LPGFacts.nz
New Zealand isn’t running out of all gases
New Zealand has relied on LPG since 1934
LPG is not the same thing as natural gas
LPG is an affordable fuel for homes and businesses
LPG and renewable energy work together
New Zealand isn’t running out of all gases
While news headlines have told us that New Zealand is “running out of gas,” the full story is very different.
New Zealand uses two main kinds of gas for energy. While natural gas has had supply issues in recent years, LPG is plentiful, reliable and affordable currently and for the foreseeable future. LPGfacts is here to explain the difference and help homeowners, business owners and all New Zealanders understand the issue and make informed energy decisions.
LPG Facts was created by Rockgas – New Zealand’s biggest and most trusted supplier of LPG.
New Zealand has relied on LPG since 1934
New Zealand homes and businesses have relied on LPG to heat their homes and hot water, cook dinner and fuel industrial processes since 1934. It’s also our favourite way to fire up the barbecue!
As a company importing and delivering LPG, Rockgas is committed to keeping supplies going well into the future.
LPG is not the same thing as natural gas
New Zealanders use two main kinds of gas: natural gas and LPG. While your heater, hot water system or cook top might look the same, no matter what’s fuelling them, the two fuels are quite different.
LPG: globally supplied, delivered in bottles and tankers
LPG, or liquified petroleum gas, is one of the world’s most popular fuels. LPG is sourced from anywhere natural gas is processed or crude oil is refined, and in some places there’s so much of it that it’s considered to be a waste product (you might have seen images of gas being burned off above oil rigs).
Because of the huge amount produced around the world, there’s no shortage of LPG now or in the foreseeable future. As well as locally produced LPG, New Zealand sources LPG from multiple overseas suppliers, making our supply even more robust and reliable.
Whether it’s shipped in or locally produced, most LPG is then delivered in bottles to the end user. If you use LPG at home, this will be in larger 45kg bottles. If you’re a fan of the great Kiwi barbie, you’ll probably get your LPG in the smaller 9kg bottle. LPG is also delivered by tanker directly to larger business users who need instant high heat energy solutions.
Natural gas: locally sourced, piped to your home
The other gas New Zealanders use for fuel is natural gas. Natural gas is found in deposits under the ground or sea, and brought to the surface to refine and distribute. In New Zealand, natural gas is mainly found in Taranaki, and is piped around the country then directly to homes and businesses (often large industries). Natural gas is also used in large-scale electricity generation, which is why it can be in high demand if hydroelectric and other renewables run short in winter.
Natural gas is more commonly used in the North Island than in the South.
Relying on local supply means our natural gas supplies have been under threat in recent years. As a result, the government has announced it will be supporting the construction of a liquified natural gas (LNG) terminal so New Zealand can import natural gas. Once this is completed it should mean further natural gas supplies for electricity generation.
LPG is an affordable fuel for homes and businesses
With more than 300,000 Kiwi homes and businesses relying on LPG every day, we have the scale to deliver affordable energy to anywhere.
Unlike electricity and piped natural gas, delivery by bottles or tanker (for industrial users) minimises the need for significant infrastructure. Home and small business LPG users pay a bottle rental and only pay for the LPG they use. (In some South Island communities, LPG is piped to homes, but again, customers only pay for what they use.)
No complicated tariffs, time-of-day charging or hard-to-remember “free days”– just simple, affordable energy for your home or business.
LPG and renewable energy work together
The move towards renewable energy sources like solar, wind, hydro and geothermal is accelerating. Most Kiwis understand that as time goes by, renewables will form a greater part of the energy mix.
Right now, though, New Zealand needs to make the most of all available energy sources. One of the best things about LPG is that when the sun isn’t shining, the wind isn’t blowing and the hydro dams are low, it still delivers! It’s why many households and businesses around the country will use a mix of energy sources to balance affordability, reliability and environmental impact. So when we’re out delivering LPG, we see many new-build homes featuring not just electricity from the grid, but bottled LPG or piped LPG for on-demand water heating and cooking, plus solar panels and batteries – especially if there’s an EV to charge.
Summing up
The bottom line? When you see news stories about “gas” and whether we’re running out of it, ask yourself which gas they mean, exactly.
While natural gas supplies are affected by local production – and the proposed import terminal will support future needs – LPG is globally available right now, affordable for Kiwi homes and businesses, and has a resilient and reliable supply chain.