New Zealand Shortlists Proposals to Build First LNG Import Plant

SEATTLE (Oil Monster): The New Zealand government has shortlisted proposals to build the nation’s first liquefied natural gas import facility, as it seeks to bolster energy security and curb reliance on dirtier fossil fuels.

The plant would come online as soon as 2027 or early 2028, Energy Minister Simon Watts said in a statement on Monday in Wellington. The government plans to sign a contract by mid-year for a plant located in the North Island region of Taranaki.

“New Zealand is experiencing a renewable electricity boom, but a rapidly declining gas supply has left our electricity sector exposed during dry years, when our hydro lakes run low,” Watts said. “The result is greater reliance on coal and diesel, and ultimately higher electricity prices, putting more financial pressure on families and making businesses less competitive.”

New Zealand has become the latest country to explore LNG procurement as it seeks to offset declining domestic gas reserves, following similar moves by major producers such as Malaysia and Indonesia. At the same time, gas is increasingly being positioned as a transitional fuel, providing around-the-clock power to backstop intermittent renewable generation.

The government released independent analysis from economic consultancy firm Sense Partners that higher energy prices have had a significant impact on the New Zealand economy, leading to a NZ$5.2 billion ($3.1 billion) loss in gross domestic product in 2025.

Courtesy: www.energyconnects.com