Our Objectives
O1
Contribute to sector-wide emissions reduction (ERA Accord) to align with New Zealand’s overall net zero mandate.
O2
Put forward a viable pathway that achieves net zero and, at the same, grows long-term hydrocarbon production.
O3
People are the bedrock of our organisation. At Matahio, we understand that fostering a world-class workforce requires investment in employee growth from the beginning.
O4
In achieving the above: promote employee skills development, increase energy security and associated revenues for the Crown and prepare Matahio New Zealand to diversify to a low carbon business in the future.
O5
Set the example for a broader decarbonisation of current and future Matahio assets in the Asia Pacific Region.
Playing Our Part in the New Zealand Net Zero Accord
In New Zealand, the Matahio Team has worked in partnership with Energy Resources Aotearoa (ERA) to ensure that the oil and gas industry has a seat at the table in shaping NZ's energy transition strategy. This work kicked-off via the public issuance of an energy transition position paper, “Fuelling the Energy Transition” and the formation of the Net Zero Accord.
Matahio NZ was one of the founding members of this Accord, which was signed in 2022, considered at the time to be a world first. By being a member of this Accord, Matahio NZ has committed to craft and follow a decarbonisation plan to contribute to New Zealand's just energy transition to a low carbon future.
This case study provides some insight into Matahio's NZ plans for decarbonisation and our approach for identifying further emissions reduction opportunities. To date, we have made significant progress:
- Recent drilling campaigns and production optimisation efforts have reduced our emissions intensity to 13 kgCO2e/Boe, positioning Cheal below industry norms.
- Absolute emissions per month have dropped from an average of 1,381 tCO2e in 2023 to 1,126 tCO2e in September 2024 over the last 9 months. At the same time, our production is trending up from an average of 1,690 boepd in 2024 to 1,820 boepd in September 2024 and reserves are being replaced.
- Our latest analysis shows that we can economically and sustainably reduce our emissions by 58% through operational upgrades, i.e., without the reliance on carbon capture or offsets.
Our commitment to the Accord puts us in a pivotal role in sustainable decarbonisation in New Zealand. Through our various emissions reduction projects ‐ highlighted in this case study ‐ we are proving that it is possible to grow a viable and sustainable hydrocarbon business on the journey towards low carbon.
A Structured Approach to Decarbonisation
Our approach to sustainable decarbonisation is grounded in pragmatism, sound technical expertise, and confidence in our operational excellence.
As a signatory of Energy Resources Aotearoa’s Net Zero Accord, we recognise the energy transition cannot be just without energy security and energy equity. Communities will continue to need affordable energy throughout the decarbonisation process. Because of this, we’ve developed an abatement curve that prioritises economic benefits in coordination with emission reductions.
This MACC is a dynamic and living document, regularly updated with new data and with the latest results of a suite of decarbonisation projects being undertaken. The MACC is accompanied by an emissions dashboard for enhanced management visibility, reinforcing our decarbonisation strategy and tracking progress against emissions reduction efforts.
2024 Group Emissions
Summary dashboard as at 30 September 2024
We have identified the following four key initiatives based on the latest revision to Matahio NZ's MACC to significantly reduce emissions:
Optimising Dew Point Chilling
By adjusting the dew point chiller operation from -18°C to -10°C, we can still meet gas specifications without excessive chilling. This seemingly small adjustment leads to reduced power consumption, which lowers our overall energy costs and decreases emissions associated with electricity generation.
Installing a Vapor Recovery Unit (VRU)
The installation of a Vapor Recovery Unit will recover low-pressure vapours currently flared from our low-pressure separator and storage tanks. By capturing these emissions, we can convert what was once wasted into a valuable resource, thereby reducing our carbon footprint while generating additional revenue from recovered hydrocarbons. This initiative not only mitigates emissions but also generates revenue.
Transitioning to Electric Compression
Replacing the natural gas engine-driven export compressor with a smaller electric motor-driven unit presents a substantial opportunity for emissions reduction. This shift will allow us to utilise grid electricity, significantly cutting down on fuel gas consumption and generating additional gas export revenue. Although this change incurs electric power costs, the reduction in emissions and potential for increased revenue from gas exports make it an economical decision.
Sourcing Electricity from the Grid
By halting the operation of all gen-sets and sourcing our electricity entirely from the grid, we can eliminate emissions associated with on-site power generation.
The MACC guides us on how we prioritise the above initiatives, high grading the most economical reduction opportunities first — in that way, we can increase energy security and associated revenues for the Crown, while also driving down our carbon footprint This approach inherently leverages the incentive to reduce our emissions in line with the New Zealand Emissions Trading Scheme and sets an example for future schemes across the Asia Pacific Region.
We are now also exploring innovative technologies, such as a drone-based sensor system for assessing fugitive emissions in 2025. This new data will be included in the next revision of our MACC and further enhance the picture of Matahio NZ emissions and emissions reduction potential.
Is Net Zero possible: beyond decarbonisation through operational upgrades
The latest MACC work has shown that sustainable or economic emissions reduction projects target an overall reduction in emissions of 58%. The remainder of emissions would typically be addressed through the adoption of carbon capture, utilisation and Storage (CCUS) technologies.
Matahio continues to assess relevant options for the implementation of CCUS, always looking through technical, operational and regulatory lenses. Whilst, at this juncture, we recognise that traditional or established CCUS technology is prohibitive for smaller players, Matahio is keen to find viable solutions for the smaller players of the future where the timeframes are likely to make them unimplementable for Matahio's current mature assets. Ongoing work includes:
Continual assessment of emerging technologies for CCUS ‐ Matahio has recently been exploring the possibility of the use of algae or microalgae to enhance the carbon capture process on a smaller scale.
Engagement with government and regulators on appropriate regulatory frameworks and incentives ‐ Matahio's COO is part of an ERA committee looking to inform New Zealand's regulatory framework for Carbon Capture and Storage.
Proactive identification of technology gaps to inform potential research initiatives.
Our Partnerships