The Green Party is calling for the Government to stop subsidising the largest user of the country’s gas supplies, Methanex, following a report highlighting the multi-national’s disproportionate influence on energy prices in Aotearoa.
“Methanex has enjoyed a free ride for far too long, costing our communities and our energy security,” says the Green Party Energy spokesperson Scott Willis.
“We can build an energy network that works for people and planet. Lower emissions and lower household costs go hand in glove.
“The Government must stop propping up multi-nationals who dominate the use of our gas supplies for their own profit, coming at the expense of all of us.
“Currently, Methanex uses anywhere from 30-45 per cent of Aotearoa’s annual gas production to make methanol. It receives huge public subsidies in the form of the free allocation of credits with the Emissions Trading Scheme. This report shows the value of these is likely to be $301 million, yet it has zero accountability to the public.
“This system is allowing corporate greed to drive up power prices and delay the transition we so desperately need.
“The Green Party supports the call by CICTAR, 350 and Common Grace Aotearoa to prioritise Aotearoa’s remaining gas supply for safeguarding our energy security.
“Subsidising Methanex is particularly galling considering this year’s energy price spikes that have pushed households into greater hardship. Prices are set to keep rising in anticipation of further spikes next winter, adding to the increasing number of manufacturing jobs being lost, plunging even more people into hardship.
“With gas supplies freed up from Methanex there would be no need for either more discoveries of gas, or importing of LNG – our existing, proven reserves could provide peaking and firming cover for the transition to full renewables. The job losses from this industry’s exit would be fewer than what have already been lost this year from the spikes in electricity prices,” says Scott Willis.