WELLINGTON, June 9 (Xinhua) -- New Zealand will move forward with plans for a liquefied natural gas (LNG) import facility to bolster energy security and cut electricity costs, Energy Minister Simeon Brown said on Tuesday.
An LNG terminal, expected to be operational by 2028, would manage "dry-year" risks when low hydro lake levels constrain generation. It could save up to 800 million NZ dollars (about 465 million U.S. dollars) annually by easing wholesale power prices, Brown said in a speech at the Auckland Business Chamber.
"Recent events in the Middle East are a timely reminder that New Zealand needs secure, diversified fuel supplies. Despite the conflict, LNG remains the fastest, cheapest and most flexible dry-year solution that can be put in place this decade," the minister said.
The government has shortlisted two providers for a request for proposals. It is working on a funding model and has ruled out levies on household power bills, Brown said.
Alongside the LNG plan, the government launched consultations on a new winter energy reliability obligation requiring major electricity firms and large users to secure back-up supply ahead of shortages, with tougher penalties for non-compliance, a government statement said.
Opposition parties, Labor and the Greens, questioned the strategy, arguing that imported gas exposes New Zealand to volatile global prices and uncertain costs. They called for greater investment in domestic renewables, warning the LNG project could become an expensive long-term commitment without clear funding or economic justification. ■
