The New Zealand government has officially announced plans to begin importing liquefied natural gas by early 2028, marking a significant pivot in the nation’s energy policy.
Energy Minister Simon Watts confirmed that the government has shortlisted six proposals for a new import terminal to be located in Taranaki, the historic hub of the country's gas industry.
The project, estimated to cost upwards of NZ$1 billion, is designed to provide a "firming" backup for the national grid.
Prime Minister Christopher Luxon stated the facility is essential to prevent a repeat of the 2024 energy crisis, where low hydro-lake levels and dwindling domestic gas reserves led to record-high power prices and forced industrial closures.
Luxon attributed the current supply shortage to the previous government’s "misguided" 2018 ban on new offshore oil and gas exploration, which his administration has since repealed.
To fund the infrastructure, the government plans to implement a levy across the electricity sector, though officials maintain the net effect will be a reduction in consumer costs.