Table of Contents
Summarised by Centrist
Prime Minister Christopher Luxon has dismissed OECD warnings about the government’s liquefied natural gas plan as “a load of rubbish”, saying the coalition remains “very interested” in the import facility.
The OECD warned the LNG proposal could lock New Zealand into fossil fuel dependence and recommended investment in alternatives such as biomass or pumped hydro.
The government announced in February it wanted an LNG import facility in Taranaki to reduce dry-year power price spikes. The cost would be spread across electricity users through a new levy.
Luxon later softened that position after conflict in the Middle East raised questions about global gas prices, saying: “If it doesn’t stack up, we won’t be doing it.”
But he now says the procurement process is continuing.
“We said that we’d come back in the middle of the year having looked at the business case for it. We are very interested in it,” Luxon said. “It’s just making sure the commercials stack up.”
Energy Minister Simeon Brown said the government had considered alternatives and identified LNG as its “preferred option”. He said New Zealand could not wait until 2037 for Labour’s Lake Onslow hydro proposal.
Labour leader Chris Hipkins called the LNG facility a “gold-plated bad idea” and said it would raise power bills through a new gas tax.
