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Speaker 1: Genesis Energy has announced it's just going to give up

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Speaker 1: on the gas. They give it another five years. The

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Speaker 1: chief executive, Malcolm John's told of Parliamentary Select Committee he

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Speaker 1: no longer sees gas as a transition fuel and they're

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Speaker 1: just going to hit the coal instead. John Carnegie is

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Speaker 1: the chief executive of Energy Resources Altered or in with us.

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Speaker 2: Now, Hey, John, Hey, how are you doing.

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Speaker 1: I'm very well, thank you. This is a reflection that

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Speaker 1: we're running out of gas, right, That's the problem here,

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Speaker 1: isn't it.

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Speaker 2: Oh well, look, unfortunately what's been said isn't a great

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Speaker 2: surprise to us. And actually it's not that gas isn't

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Speaker 2: a viable transition fuel. It's said it's simply not coming

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Speaker 2: available to the market and the quantity is wanted, and

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Speaker 2: Genesis is are saying that out loud, so you know,

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Speaker 2: these comments aren't actually anything more than a practical reflection

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Speaker 2: of the reality that major gas uses are facing right

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Speaker 2: across the economy. And I've been saying this for some time,

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Speaker 2: that we've got an energy shortage, and unfortunately, this is

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Speaker 2: what an energy shortage looks like. When one of our

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Speaker 2: largest gas users says there's not enough gas for them.

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Speaker 2: And we need to turn to to make electricity.

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Speaker 1: I mean they've gone to a deadline of twenty thirty,

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Speaker 1: which is alarmingly close. Is that realistic?

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Speaker 2: Well, realistic in terms of what gus.

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Speaker 1: Like they're really going to stop doing gas in five

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Speaker 1: years time?

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Speaker 2: Well, look, you know, I think the frustrating thing about

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Speaker 2: this is that New Zealand actually has abundant natural gas

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Speaker 2: that can be harnessed to ensure a thriving economy and

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Speaker 2: fueling our manufacturers and exporters to deliver key we jobs

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Speaker 2: and prosperity. It's just that, through a variety of policy decisions,

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Speaker 2: gas isn't coming to market, and you know, as you'd expect,

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Speaker 2: you know, Genesis is responding to those market signals.

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Speaker 1: What does this? So Genesis is my provider and I

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Speaker 1: pay them for electricity, and I also pay them for

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Speaker 1: gas because the old stove runs on gas. You know,

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Speaker 1: cook on gas. What does that mean? Am I not

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Speaker 1: going to be able to cook on gas in five years?

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Speaker 2: Oh? No, Look I think is there's plenty of gas.

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Speaker 2: New Zealand has lots of gas we just need.

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Speaker 1: Is Genesis going to continue to be my company then?

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Speaker 1: Or are they not going to provide my gas.

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Speaker 2: Well, love, I mean you need to. They'll be engaging

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Speaker 2: with you as one of their customers. But we do

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Speaker 2: have plenty of gas. We just need the right conditions

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Speaker 2: to get it out of it.

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Speaker 1: So you don't know what this practically means about them

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Speaker 1: saying that they're going to give up on the gas

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Speaker 1: in five years as to everybody who's got gas provided

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Speaker 1: by Genesis suddenly needs to find a new provider.

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Speaker 2: In terms of electricity generation, they are signaling that they're

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Speaker 2: going to rely on coal, and good on them. You

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Speaker 2: know they are doing what they can. But I can

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Speaker 2: assure you that everyone would prefer to see domestic natural

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Speaker 2: gas filling the gap when we have low lake levels.

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Speaker 2: But seem to be we seem to be doing the

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Speaker 2: reverse of what the rest of the world are doing.

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Speaker 2: We're going from to coal, not coal to gas.

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Speaker 1: That's pretty mental. Now they're talking about eventually converting Huntley

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Speaker 1: to instead of burn the coal, burning the wood waste.

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Speaker 1: Is this just pie in the sky nonsense that they

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Speaker 1: say to make us feel good about it, or is

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Speaker 1: that realistic?

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Speaker 2: No? I know that's some There are active, active plans

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Speaker 2: to have that happen, and they've they've said they're going

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Speaker 2: to work at pace to get three hundred thousand tons

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Speaker 2: of domestically produced by mass in place by twenty twenty eight. Yeah,

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Speaker 2: but you know it is a budding market in New Zealand.

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Speaker 1: But did you say three hundred tons or three hundred

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Speaker 1: thousand tons?

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Speaker 2: Three hundred thousand tons?

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Speaker 1: I mean that's still nothing, is it right? They've got

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Speaker 1: five hundred thousand tons of coal there and they're ordering

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Speaker 1: seven hundred and seventy thousand tons of coal, So three

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Speaker 1: hundred thousand tons of wood is sort of just a

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Speaker 1: tiny fraction, isn't it?

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Speaker 2: Well to put it into perspective, Hither, it could in

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Speaker 2: a normal year, whatever a normal year now means in

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Speaker 2: an electricity market, it could an a normal average year

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Speaker 2: avoid the use of coal. But in a dry year,

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Speaker 2: of course, Genesis could use three times. I see what

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Speaker 2: you mean that much? So you know the answer to

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Speaker 2: that question is you know it depends.

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Speaker 1: Yeah, Hey, John, thank you very much. I really appreciate

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Speaker 1: you talking us through it. As John Carnegie, the Energy

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Speaker 1: Resources out here all chief executive.

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Speaker 2: For more from hither Duplessy Allen Drive, listen live to

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Speaker 2: news talks.

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Speaker 1: on iHeartRadio