Source: Energy Resources Aotearoa
Energy Resources Aotearoa acknowledges the Government’s decision to progress importing liquefied natural gas (LNG) as a practical step to strengthen New Zealand’s energy security.
Today’s announcement to move rapidly with the aim of signing a contract by mid-2026 to build an LNG import facility by 2028 responds to a growing fuel shortage in the energy system, driven by tightened domestic gas supply and intermittent weather-based sources of generation.
Energy Resources Aotearoa Chief Executive John Carnegie says the decision recognises the system’s vulnerability in dry years, when low rainfall or wind and reducing domestic gas supply constrain fuel availability during high electricity demand periods.
“Thermal fuels back our energy security, and LNG gives the system another option when it is under pressure.
This is about giving the system breathing room. LNG isn’t a replacement for domestic gas or renewables, but can help stabilise electricity supply and prices when the sun doesn’t shine, the wind doesn’t blow, and hydro lakes are low.”
The Crown procuring this infrastructure on behalf of electricity users seems a sensible way to protect New Zealanders against future policy changes, Carnegie says.
“The market is best placed to decide how much LNG is needed and when it is used. What matters is keeping the option available so the system has fuel when it needs it.
LNG can act as an insurance policy, but it comes with risks that must be managed, such as exposing New Zealand to international prices and global events beyond our control.”
For that reason, domestic gas remains critical, Carnegie says.
Carnegie also says New Zealand’s energy system will be at its most effective when renewable generation and firming fuels work in harmony.
“Strengthening the system over time will require continued investment in renewables, firming capacity and domestic gas supply, backed by clear and durable policy settings.
Keeping LNG as an option while more wind, geothermal and solar are built, and the gas sector rebuilds, helps manage risk and keep electricity more reliable.”
