Taranaki LNG Terminal
Background
In August 2024, the New Zealand government announced it would fast-track approvals for a new LNG terminal in an attempt to address gas shortages.[1]
In September 2025, an independent report commissioned by gas company Clarus revealed the costs for a proposed LNG terminal would be greater than initially expected, and that financial support from the government would be required. The government indicated that it would be willing to provide non-financial support only.[2]
In October 2025, the government announced it would consider paying for the LNG import terminal after the private sector had failed to move the concept forward. It was hoped the terminal could be ready by the New Zealand winter of 2027. Plans included FSU and FSRU options.[3][4][5]
In December 2025, the government revealed it had received some commercially viable propositions for the LNG import terminal.[6]
In February 2026, it was shared that six proposals for the project had been shortlisted, with costs upwards of a billion New Zealand dollars. All of the short-listed options were located in Taranaki. In an effort to pay for the facility, the government announced a levy on electricity. Engineering company Worley was announced as the technical advisor for the project.[7][8]
In March 2026, the prime minister shared that the government would only approve the proposed terminal if the economics made sense, representing a cooling of its approach to the project. The plan was facing rising costs as a result of the war in Iran.[9]
In April 2026, when asked about the status of the LNG terminal, the new energy minister said the "the world has changed since that initial decision was made," casting doubt on the future of the project.[10]
However, by May 2026, it was revealed that the government had taken another look at the proposal and decided to continue moving forward with the project.[11]
Environment and social impacts
Greenpeace called the proposed terminal "a dirty, dumb, and expensive decision that will leave New Zealanders subsidizing more climate pollution through higher electricity bills."[12]
Community energy lobbyists in Taranaki said that having the facility so close to homes and workplaces raised concerns over the impact of an explosion. "They are locking in gas, making us pay for it, without showing it works environmentally or economically," one leader shared.[13]
Multiple groups called for research into how renewables could close the gap instead of an LNG terminal, an option they claim the government did not fairly assess. Advocates of the renewable approach argued that the LNG terminal would link domestic energy costs to volatile international markets. The impact of the war in Iran on global LNG prices demonstrated this risk, increasing concern among opponents of the LNG terminal.[14][15]
The government's environment watchdog warned that the terminal could raise energy prices and carbon emissions, calling it "the worst of both worlds."[16]
Articles and Resources
References
- ↑ "Christopher Luxon announces Government to fast-track consent for new liquified natural gas terminal at post-Cabinet press conference - NZ Herald". www.nzherald.co.nz. Retrieved 2026-05-21.
- ↑ "Industry finds natural gas terminal too costly, seeks alternatives - Newsroom". newsroom.co.nz. Retrieved 2026-05-21.
- ↑ "Government may pay for LNG import terminal to tackle market failure | interest.co.nz". www.interest.co.nz. Retrieved 2026-05-21.
- ↑ "New Zealand plans to begin LNG imports in winter 2027". LNGPrime. 2025-10-01. Retrieved 2026-05-21.
{{cite web}}: CS1 maint: url-status (link) - ↑ "New Zealand's LNG import plans include FSRU and FSU options". LNGPrime. 2025-10-06. Retrieved 2026-05-21.
{{cite web}}: CS1 maint: url-status (link) - ↑ "LNG for New Zealand 'stacks up', says Finance Minister Nicola Willis | BusinessDesk". businessdesk.co.nz. Retrieved 2026-05-21.
- ↑ "New electricity levy 'not a tax', PM says | Stuff". www.stuff.co.nz. Retrieved 2026-05-21.
- ↑ "Worley gets technical advisor role for New Zealand's LNG import terminal - Offshore Energy". www.offshore-energy.biz. Retrieved 2026-05-21.
- ↑ "Economics of New Zealand's LNG terminal plan must stack up to get go-ahead, prime minister says". reuters.com. 2026-03-29. Retrieved 2026-05-21.
{{cite web}}: CS1 maint: url-status (link) - ↑ "New Minister says world has changed, old Minister says Cabinet has made decision on LNG | interest.co.nz". www.interest.co.nz. Retrieved 2026-05-21.
- ↑ "Government pushing on with procurement process for LNG import terminal | interest.co.nz". www.interest.co.nz. Retrieved 2026-05-21.
- ↑ "LNG terminal decision: Dirty, dumb and expensive - Greenpeace - Greenpeace Aotearoa". www.greenpeace.org. Retrieved 2026-05-21.
- ↑ "'Don't put it alongside us': Liquified Natural Gas safety fears raised in Taranaki | RNZ News". www.rnz.co.nz. Retrieved 2026-05-21.
- ↑ "No change to government's LNG plans after global price spike | RNZ News". www.rnz.co.nz. Retrieved 2026-05-21.
- ↑ "Green Building Council calls for solar over Government's LNG plan". www.1news.co.nz. Retrieved 2026-05-21.
- ↑ "LNG plan 'worst of both worlds', environment watchdog warns - Newsroom". newsroom.co.nz. Retrieved 2026-05-21.
Additional data
To access additional data, including an interactive map of LNG terminals, a downloadable dataset, and summary data, please visit the Global Gas Infrastructure Tracker on the Global Energy Monitor website.
