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Earlier this year, New Zealand announced that it aims to select a contractor to build its first LNG import terminal in Taranaki by mid-2026.
MBIE, on behalf of the New Zealand government, released a registration of interest (ROI) and a project information memorandum (PIM) for LNG import facility services in October 2025.
MBIE’s LNG Project Team said at the time that “it may be that the best solution to deploy is an FSRU, or it might be that an FSU with onshore regasification facilities is best.”
Energy Minister Simeon Brown said in a statement on Tuesday that the government of New Zealand is progressing two providers to a request-for-proposal to deliver an LNG import facility.
New Zealand intends to sign a contract with a preferred provider this year, with the facility expected to be operational in 2028, he said.
Brown did not reveal the names of the bidders.
Port Taranaki said in a separate statement that both projects proposed by the bidders are located in Taranaki.
“Port Taranaki is ready to support the establishment of an in-port LNG import facility, following the government’s confirmation today it will continue with the procurement process,” it said.
Power prices and energy security
Brown said that New Zealand households and businesses are a “step closer to relief” on their power bills and greater energy security, as the government takes the next step to deliver the LNG import facility.
“Renewables are booming under this government’s electrify NZ reforms with record levels of renewable generation and new wind, geothermal, and battery projects coming online. However, no renewable alternative can cover the weeks or months needed to back up our power system by 2028, when the next dry year could arrive,” he said.
“As New Zealand’s indigenous gas supplies run down, that squeeze only gets worse. Without LNG to fall back on, a dry year leaves us with unacceptable choices. Either wholesale prices skyrocket and power bills climb for every Kiwi household, or businesses are forced to shut their doors and lay off workers as gas is taken from industry to produce electricity,” Brown said.
Fastest way
Brown said that an LNG import facility “is the fastest and most affordable way to cover the dry-year gap, keep the lights on, and protect thousands of Kiwi jobs.”
“Every other comparable country in the OECD either has access to abundant natural gas or access to gas imports. New Zealand is an outlier, and it is time we caught up,” he said.
Since the government announced the LNG facility in February, wholesale electricity prices for 2028 and 2029 have fallen by around $20/MWh, delivering savings of up to NZ$800 million a year that will flow through to Kiwi households and businesses, according to the minister.
“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,” he said.
“Delivering LNG takes coordination that only government can provide, and we are providing it. I have asked MBIE and NIFFCO to work through the detail of how the facility will be paid for, including engaging with the gentailers on a fair funding model, and will have more to say in due course,” Brown said.