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Speaker 1: Afternoon, Cabinet has decided how it's going to try to

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Speaker 1: fix our energy problems. The oil and gas exploration ban

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Speaker 1: will be overturned by the end of this year. Consents

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Speaker 1: for a new facility to store aling will be fast tracked,

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Speaker 1: and there will be a review of the electricity market

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Speaker 1: to make sure that no one's profiteering off us. John

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Speaker 1: Kidd is the director and the head of research at

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Speaker 1: Analytica and with us right now. Hey, John, first blush,

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Speaker 1: do you like it?

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Speaker 2: There's not lots of detail behind it, but the first

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Speaker 2: impression is that it looks really comprehensive. I mean the

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Speaker 2: way we think about in the enji sector as we

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Speaker 2: look at upstream, midstream, downstream, and there do seem to

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Speaker 2: be some pretty affirmative steps being taken in each of

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Speaker 2: those spaces. So it is positive.

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Speaker 1: I think, what do you think of all of what's

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Speaker 1: been announced today is going to bear the first fruit?

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Speaker 2: Yeah, So you know, we're already thinking about a pressure

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Speaker 2: come off with the seas of rain, and then we're

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Speaker 2: seeing the mechanics steel that we caught too ago, so

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Speaker 2: there is some heat coming out of the market. So

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Speaker 2: you know, in terms of the deepest of pressure. We're

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Speaker 2: already staying to see a little bit of relief. But

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Speaker 2: what you can do, probably at the front end of

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Speaker 2: all of the measures which have been said so far,

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Speaker 2: is probably look towards just ensuring that hydropontingency is available,

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Speaker 2: which the government has here is going to do. There

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Speaker 2: are provisions for that anyway to take place, but the

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Speaker 2: government sounds like they're going to be safeguarding that, and

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Speaker 2: then towards the medium term, probably looking towards what the

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Speaker 2: government is also said towards LNG because that can be deployed.

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Speaker 2: It's not a rapid deployment, but it can be deployed

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Speaker 2: in sort of months or possibly a year or two,

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Speaker 2: and that's something that could be quite important. And as

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Speaker 2: a transition we figure ourselves out longer term, who do you.

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Speaker 1: Think is going to build that LNG facility? Who's interested?

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Speaker 2: Well, the way the government seems to have pitched it

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Speaker 2: is that they're going to streamline the process for private

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Speaker 2: capital to come towards us. Interesting to be the case

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Speaker 2: across the board, and you know, there are plenty of

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Speaker 2: examples internationally where these sort of facilities are provided by

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Speaker 2: private investors, and the government seems to have said that

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Speaker 2: we're going to do what we can at our streamline

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Speaker 2: what's needed to be able to accommodate a facility of

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Speaker 2: this type. But the facility itself is probably going to

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Speaker 2: be paid for by an investor somewhere on the line.

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Speaker 2: Would be en suldren as I would think they would.

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Speaker 1: Turn up the oil and gas band being lifted. How

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Speaker 1: soon before we find more gas and actually get it

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Speaker 1: out of the ground.

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Speaker 2: Not quickly. There's not going to be something which you

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Speaker 2: will see move the dialing time soon. Expiration is a

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Speaker 2: years and sometimes decades type horizons. So now when you're

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Speaker 2: overturning this type of frankly damage that's been done, it's

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Speaker 2: not going to be something you'll see in terms of

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Speaker 2: payback in a year or two or even three. It'll

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Speaker 2: be something which will take quite a bit longer to

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Speaker 2: see itself come through. If it doesn't, it's about getting

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Speaker 2: paiperwork out of the way again and deregulating. But in

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Speaker 2: terms of what happens next that it's up to investors

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Speaker 2: to put their money towards whatever new framework is going to.

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Speaker 1: Be a they're gonna our investors realistically going to come back.

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Speaker 2: Yeah, it's going to be a tough ask. Most of

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Speaker 2: the investors that we did have here have gone and

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Speaker 2: we've got a very small poll left of investors that

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Speaker 2: will be the first point of call when it comes

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Speaker 2: to reinvesting. And we've had one of those investors talk

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Speaker 2: about exiting the New Zealand operations, and it's not clear

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Speaker 2: what's going to happen next. The only thing we can

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Speaker 2: do is to set the conditions of engagement, the rules

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Speaker 2: of engagement to be as accommodating as you can, which

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Speaker 2: I think is where the government's trying to sere back towards.

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Speaker 2: And I hope that the money will flow because if

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Speaker 2: we're talking billions of dollars, let's need it to be

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Speaker 2: able to stabilize where we're at and years of reinvestment.

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Speaker 2: So because I say this is not the short end

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Speaker 2: or the quick end of the suite that's been out today,

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Speaker 2: it's going to be a slow burn and it comes

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Speaker 2: to indigenous gas.

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Speaker 1: John, it's always good to talk to you. Thank you

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Speaker 1: so much, John kd, Director and head of research at Analystica.

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