Luxon on Monday wrote to Hipkins, asking him to commit to supporting offshore exploration for natural gas for at least the next 10 years.
Speaking to media this afternoon, Hipkins said if the letter was a serious attempt to get bipartisan agreement on energy policy, “it really hasn’t come out that way”.
Labour was “certainly open to having conversations with the government”, but he said his party had been clear about gas exploration.
“The government is in a bit of trouble here because they’ve gone out there and promised everybody that there is plenty of gas, that they can find it, that it was just the ban on offshore exploration that was causing the problem.
“The reality is, we haven’t found significant finds of new gas in New Zealand for over 20 years, removing the offshore oil and gas ban is not going to change that reality.
“We need to be moving towards renewable energy.”
Earlier, Hipkins told RNZ’s Morning Report programme it was a “desperate attempt” by the Prime Minister to pre-emptively blame the previous Labour government if oil and gas companies do not see the prospect of finding more gas in New Zealand attractive.
However, he was waiting to see what the government announces in response to a recent review of the electricity sector before he responds to the request.
In the letter, seen by RNZ, Luxon said if Labour reinstated a ban on offshore gas exploration, it might pose an insurmountable barrier for some investors.
“You have said previously that, if elected, Labour will not spend its time ‘pausing, cancelling, and reviewing everything’. But bipartisanship must be more than a political slogan. Hence, I am writing to seek a commitment from the Labour Party to support offshore exploration for natural gas for at least the next ten years.
“Under even the most ambitious plans for New Zealand’s renewable transition, a secure supply of fuel remains a cornerstone of our energy landscape – underpinning stability and affordability for families and businesses alike.”
The letter comes amidst a backdrop of rising energy prices. Gas prices have more than doubled on average over the past five years, with supply falling faster than expected.
Luxon said he hoped that by lifting the ban on offshore exploration, New Zealand would reach a secure supply of fuel to support the country’s energy transition.
Last week, the government reopened applications for oil and gas exploration across the entire country for the first time since the 2018 ban with a new, faster route for awarding permits.
In a statement, Resources Minister Shane Jones said a new “open market” pathway would allow firms to apply at any time for permits to explore new areas of land and sea.
After an application was lodged, competitors would have three months to make rival bids. Officials would then choose the strongest proposal.
But Hipkins doesn’t believe offshore gas exploration is the answer to New Zealand’s energy woes.
“It is not going to be an abundant and cheap form of energy for New Zealand in the future – we’ve got to get our heads around that.
“We have other abundant and cheap energy available to us, we should be really ramping up our emphasis on that if we want to bring power prices down.”
If the government can find someone to drill for gas – and they find gas – it would still be years before that gas came on stream, he believed.
“We have got a problem… that we need to address. But renewable energy… could solve those problems much quicker then hoping one day that we find more gas.”
