Government says yes to liquefied natural gas

The Government will establish a liquefied natural gas (LNG) import facility to strengthen New Zealand’s energy security and support economic growth.

The Government says LNG will provide a reliable back-up fuel source to manage dry year risk, help stabilise electricity costs, and address New Zealand’s declining domestic gas supply. Having access to LNG in New Zealand is expected to deliver savings of upwards of $265 million per year by reducing electricity price spikes and lowering the risk premium that is currently built into power bills.