The release of a new report highlights that natural gas is not a viable solution for Aotearoa’s energy future, further underscoring the need for a well-planned Just Transition for workers and communities in Taranaki.
The report, released by 350 Aotearoa, Common Grace Aotearoa and the Centre for International Corporate Tax Accountability and Research (CICTAR), argues that tightening gas supplies and declining production margins are increasingly shifting Methanex’s business model from methanol production to on-selling gas, at a significant mark-up.
E tū is concerned about the job insecurity facing its members at Methanex, Aotearoa’s largest natural gas consumer, and the broader impact on downstream workers in Taranaki’s engineering and construction sectors.
Jesse Davis, a tradesperson in the industry in Taranaki, says workers are feeling the pressure.
The uncertainty in the oil and gas industry is stressful for workers unsure about their future,” Jesse says.
“Many of us may have to leave Taranaki without work, but we want to stay, support our families, and help the region thrive. I want my children to have opportunities here, not be forced to leave due to a lack of jobs.
“Oil and gas have provided well-paying jobs, but when that ends, we don’t want Taranaki to decline. A Just Transition can keep Taranaki prosperous and vibrant. A clear plan would reduce workers’ stress and provide a path forward. New sustainable energy projects could let us use our skills locally and support our families.
The Government must urgently act on a Just Transition – it’s time for action, not words. A Just Transition needs long-term vision and commitment beyond short political cycles.”
E tū Assistant National Secretary, Annie Newman, says workers are in a “wait and see” mode:
“There are redundancy clauses in place for some workers, but no Just Transition commitments at the employer level. Workers are aware that nothing is guaranteed in the medium-to-long term, and the lack of a clear plan leaves many in limbo.”
Methanex plays a key role in Aotearoa’s gas industry, yet financial reporting suggests the company faces a gradual decline, with some analysts predicting a complete exit from New Zealand by 2029, if not sooner. This has significant implications for the region, with challenges going beyond Methanex itself.
“Downstream companies that support Methanex have already seen significant job losses. Traditionally, Taranaki-based contractors had 80% of their work locally and 20% elsewhere. Now that’s flipped, with only 20% of their work coming from the region.”
The report highlights a growing understanding that the oil and gas industries have limited long-term benefits. Offshore wind projects, such as those proposed by Copenhagen Infrastructure Partners and NZ Super Fund, present a better opportunity for Taranaki workers and communities.
“Offshore wind projects are a real solution for a Just Transition in Taranaki, providing both construction and long-term maintenance jobs while contributing to Aotearoa’s energy security. The recent exit of BlueFloat highlights the need for a coordinated national approach to ensure these opportunities are realised.
“E tū also calls for a focus on more sustainable energy solutions as the price of renewable energy technology, such as wind, solar, and battery storage, continues to fall. Natural gas is not the answer for Aotearoa’s energy future. Financially and geologically, the industry cannot deliver the energy security that New Zealand needs.
Annie says any energy transition must prioritise the workers and communities that have powered Aotearoa for generations.
“The Taranaki community deserves better than being left to pick up the pieces. We need a Just Transition that ensures good jobs, community stability, and a sustainable future for Taranaki and all of Aotearoa.”
