Build an LNG terminal to provide ‘dry year’ backup

National plans to build a liquified natural gas (LNG) terminal in Taranaki to provide backup when renewable energy sources run low.

“New Zealand is experiencing a renewable electricity boom, but a rapidly declining gas supply has left our electricity sector exposed during dry years, when our hydro lakes run low,” Energy Minister Simon Watts said.

“The result is greater reliance on coal and diesel, and ultimately higher electricity prices, putting more financial pressure on families and making businesses less competitive.”