A study of variations in cathodic protection potential on a natural gas pipeline in the North Island of New Zealand is reported. Both the measured pipe‐to‐soil potential (PSP) and the current measured through an installed defect in the pipeline coating show strong correlations with variations in measured magnetic and telluric fields. Contrary to predictions from distributed‐source transmission line theory, analysis shows that the closest correlations of PSP and current are with the component of telluric field perpendicular to the pipeline. This orientation is close to perpendicular to major electrical conductivity contrasts associated with both the local coastline and with on‐shore Earth conductivity structure. It is therefore inferred the variations in PSP which drive the variations in defect current are the result of changes in the local Earth potential. While reporting on specific observations from New Zealand, these results should be applicable across a wide range of middle and high‐latitude global locations. Estimates of possible corrosion rates for the pipeline in question suggest that such enhancement of telluric field variations by conductivity structure may pose significant risk to pipelines in the event of defects in the pipeline coating.