Port Taranaki has welcomed the announcement that Taranaki has been chosen as the location for a liquefied natural gas (LNG) project, saying the development of a facility will be a confidence boost for the region.
On Monday, the Government announced it would proceed with the procurement process for an LNG facility. Leading proposals have been shortlisted, and the Government is progressing to commercial contracting.
While it is yet to be determined what shape a project will take, including the location in Taranaki, Port Taranaki chief executive Simon Craddock said the port was ready to be involved.
“Port Taranaki is very pleased with this decision. We’ve played a key and substantial role in support of the energy sector over many decades, and we’re ready to play a supporting role to LNG imports, utilising our wharves, energy infrastructure, marine services, and skills and knowledge.”
Mr Craddock said gas remained vital to New Zealand’s energy mix in helping power homes, businesses, industry and the economy, and ensuring energy security, resilience and affordability.
“As gas reserves decline, LNG imports shape as an important part of the overall energy solution for New Zealand.
“In addition, the availability of [LNG] fuel for firming will ultimately support the build-out of more renewable generation projects, allowing the time for these projects to progress.
“We’re aiming to develop a multiuse facility here that can support a range of energy solutions, including renewable projects, such as the Kapuni renewable energy and green hydrogen project and, eventually, an offshore wind industry in Taranaki,” Mr Craddock said.
He said the LNG development would be a fillip for Taranaki.
“It’s a great confidence boost for Taranaki, which has weathered several challenging years through the decline in oil and gas activity. We have a skilled and experienced engineering and fabrication sector in Taranaki that has developed in support of the energy industry, so there’s the opportunity for this skill base to be tapped into for an LNG project, providing economic benefits for the wider region.”
Mr Craddock said Port Taranaki had worked constructively with the Government throughout the process to date – providing information and promoting the region’s capability.
“We’ll continue to work collaboratively as needed, to ensure we’re ready to support a project should we be required.”
Port Taranaki Board chair Jeff Kendrew said the endorsement of Taranaki for a LNG facility would help to bolster the region, and a port role would help future-proof Port Taranaki as a key strategic and economic asset.
“The nature of energy trade is changing and Port Taranaki, operating in New Zealand’s energy hub, has an important role to help facilitate this change,” Mr Kendrew said.
“Our strategic direction is focused on developing a multiuse facility that is here in perpetuity, supporting the ongoing success and growth of Taranaki, and wider New Zealand.
“Health and safety are paramount at Port Taranaki, and they will continue to be the number one priority of any development that includes the port and port facilities, infrastructure and services.”
