The Government is carrying out a procurement process for a liquefied natural gas (LNG) import facility at Port Taranaki.
The aim is to support energy security, resilience and electricity pricing, particularly during ‘dry years’ of reduced hydro electricity production.
Two potential LNG providers have been shortlisted and are further developing their project proposals for consideration.
The Government expects to identify a preferred provider before the end of the year. Should a project proceed, having satisifed all safety and environmental requirements, the import facility could be operational in 2028.
This page is designed to provide clear, factual information about LNG and Port Taranaki’s role.
What is LNG?
Liquefied natural gas (LNG) is natural gas that has been cooled to its cryogenic liquid form so it can be transported and stored easily and safely. LNG can be used to:
- Provide a back-up fuel option for electricity generation when needed and fuel existing gas-fired generation.
- Provide a gas supply for businesses and industries that rely on gas, giving them time to consider the best long-term energy solution for their needs.
- Support the build-out of more renewable generation projects, allowing the time and space for these projects to progress.
For more information about what LNG is, go to the MBIE LNG web page here.
Why is the Government considering LNG?
New Zealand has a highly renewable electricity system – about 60% of our electricity comes from hydro (rainfall).
However, we are vulnerable to ‘dry years’, which are periods of time when low rainfall means we can’t rely on the hydro lakes to generate electricity. This can be compounded when other renewable generation sources, such as sun and wind, are also low.
New Zealand uses gas and coal as electricity production support during dry years. But all of New Zealand’s major natural gas fields are in decline and coal can’t fill the gap on its own.
This means there’s a risk that in a dry year:
- Power stations can’t get enough fuel to generate electricity.
- Gas is diverted to electricity generation leaving other users short.
- We have electricity shortages and/or high prices.
Therefore, LNG imports are being considered as a way to support the electricity system during dry years until other forms of 'firm generation' can provide that cover.
For more information on the future role of renewables and renewable energy projects, go to the MBIE LNG web page here.
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How does an LNG import facility work?
Importing LNG is a well-established practice around the world.
LNG is transported in ships at -160 degrees - its cryogenic liquid form. At the import location, the LNG is 'regasified' or warmed into its gas form, and then sent to the gas distribution network. This natural gas is the same as the natural gas that is produced in Taranaki and supplied via pipeline across the North Island.
While specifics of a LNG facility at Port Taranaki aren’t yet known, typically, facilities involve a ship-based storage system (Floating Storage Unit), which receives LNG deliveries from a second ship (LNG carrier) when needed.
Who’s leading the project?
The Ministry of Business, Innovation and Employment (MBIE) is leading and managing the procurement process.
If an import terminal project goes ahead, the chosen developer will build, own, operate and maintain the import terminal. MBIE and Port Taranaki will provide support during the process.
The developer will engage closely with the Taranaki community and users of the marine area on safety, environmental and cultural considerations.
The LNG itself will be procured separately from the procurement of the import facility.
What’s Port Taranaki’s role?
Port Taranaki has supported the oil and gas industry for decades and has experience, skills and infrastructure that can support LNG imports. The Maui national gas transmission pipeline, which the regasified LNG will flow through, also runs near the port.
The Government has announced that two proposals for an LNG facility have been shortlisted and both are located at Port Taranaki.
While the competitive procurement process continues, the identity of the shortlisted developers, the possible location of a facility at the port, and the possible configuration of a facility, are commercially sensitive and have not been publicly disclosed.
To be clear, Port Taranaki is not a developer – we are a facilitator of trade.
Throughout the process, Port Taranaki has provided port-specific information to MBIE and to prospective developers as they have formed their import facility proposals.
This has continued with the shortlisted developers, and we are enabling and supporting surveys and other investigative ground and harbour work.
We have set up an LNG project team within our business to ensure we can provide information quickly and are ready to support the work should the Government go ahead with an LNG import facility.
What about LNG safety?
At Port Taranaki, safety is our priority.
We operate on behalf of the community and as part of it, so before any operation proceeds at Port Taranaki we need to be satisfied that all health, safety and environmental matters have been addressed.
At Port Taranaki, the transfer of petrochemicals, such as natural gas and LPG, always follows strict safety procedures and adheres to international safety protocols.
We appreciate there are some concerns in the community about the safety of an LNG facility near homes, businesses and schools.
MBIE states it will not recommend that the Government progresses with an import facility that MBIE or external engineers have any safety concerns about.
Should it proceed, the establishment of an LNG facility at Port Taranaki will follow strict safety regulations and controls – including for the vessels, transfer, storage, regasification and transmission.
Before a project gets underway, safety cases covering hazard analysis, prevention, and emergency response, alongside environmental impact analysis, will be prepared and reviewed.
Port Taranaki will also put the safety cases under scrutiny.
For more about how MBIE will assess safety aspects of a LNG import facility, click here.
Here are some safety facts from MBIE’s LNG web page:
Import v export LNG terminals
In the media and on social media, examples of LNG terminal accidents overseas have been used to highlight concerns regarding safety.
While we appreciate there are genuine concerns in the community, it’s important the information presented is factual and correct.
The proposed facility at Port Taranaki would be an import terminal, whereas an accident highlighted in Algeria (2004) was at an LNG export terminal, and an incident in Qatar (2026) was at a gas processing plant that produces natural gas for the domestic market.
LNG import terminals are fundamentally different facilities to LNG export terminals and domestic gas processing plants.
The accidents in Algeria and Qatar were at facilities that perform different functions, use different equipment and operate under different process conditions to what is relevant to New Zealand’s proposed LNG import terminal.
What about the environment?
The marine environment is our means of doing business, a key community asset, and, most importantly, the home of marine and bird life, so we want to ensure it is healthy and safe for all.
Before any operation proceeds at Port Taranaki we need to be satisfied that all health, safety and environmental matters have been addressed.
Here is some environmental information from MBIE’s LNG web page:
What’s next?
Port Taranaki continues to provide information to the potential developers and provide access to the port for land and sea surveying and assessments.
Our LNG team is focused on being prepared if a project goes ahead.
We await a decision from the Government later this year, following the end of the procurement process.
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Share your thoughts on the proposed LNG import terminal
Port Taranaki is committed to providing clear, factual information about the proposed LNG import facility.
We encourage you to share your views with us. Your input will help inform our ongoing communications.
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