The latest government figures show New Zealand has 11 years of remaining gas reserves which emphasises the need for new exploration and development, said the country's upstream representative body.

The new data released today by the government showed proven and probable remaining reserves were 2116 petajoules at 1 January 2019, up about 7% on last year.

This would be equivalent to 11 years of demand based on four year’s usage.

"New exploration and development is crucial. Potential work on the Maui field and around the South Island will be very important for New Zealand’s energy future," said the Petroleum Exploration and Production Association of New Zealand (Pepanz).

"A strong supply of New Zealand natural gas means we could reduce the amount of coal we burn, keep electricity prices down and avoid the need to import LNG from Australia."

"This is confirmed by data also released today showing coal-fired electricity generation in the first quarter of 2019 jumped 138% from the same period last year due to a temporary constraint in natural gas supply."

There is a ban in New Zealand on new offshore exploration permits, but existing permit holders - particularly OMV - have made commitments to continue investing in exploration.

The Austrian operator intends to drill later this year three wells in the Taranaki basin, and potentially one or more wells in the Great South basin.

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NZ has 11 years of gas reserves