WELLINGTON, May 25 (Xinhua) -- New Zealand on Monday unveiled a loan guarantee scheme aimed at helping businesses reduce reliance on natural gas, as declining reserves and rising prices pressure the industry and energy security.
The gas transition loan guarantee scheme, part of the budget 2026 to be unveiled on Thursday, would support up to 1.2 billion NZ dollars (705.2 million U.S. dollars) in bank lending, Finance Minister Nicola Willis told a press conference.
The government will guarantee 80 percent of eligible loans, which will "make loans more affordable for firms wishing to switch fuel sources," Willis said.
The government has allocated 48 million NZ dollars to cover potential losses through the budget 2026, and under the scheme, businesses must cut gas use by at least 15 percent while maintaining or increasing output to qualify.
The initiative aims to "preserve jobs, improve New Zealand's economic outlook, and leave more gas available to firms who have no viable alternative to gas," said Willis.
Associate Energy Minister Shane Jones said that 12 of New Zealand's 17 producing gas fields are expected to cease operations within a decade, while reserves fell 23 percent over the past year.
Energy Minister Simeon Brown said the energy efficiency and conservation authority will receive 5.9 million NZ dollars to support businesses exploring transition options.
Officials estimate the scheme could reduce gas consumption by up to 10 petajoules annually if fully utilized.
The government will also introduce legislation to improve transparency in gas supply and demand data, aiming to bolster market confidence and investment, Jones said. ■
