The government of New Zealand has announced plans to contract to build a new LNG import terminal in the Taranaki region that could open as early as 2027 or early 2028 (New Zealand Government press release, 09/02/2026). Considering a renewable electricity boom and a declining gas supply for the electricity sector, the country has decided to establish an LNG import facility to provide a backup fuel source and reduce price spikes on electricity prices. The country estimates that LNG availability will be worth about NZD1.2bn (USD725m) by 2035 on its economy, reducing volatility of energy prices and gas shortages. The government plans to review proposals and to progress on commercial contracting by mid-2026.
New Zealand’s capacity relies heavily on hydro (57% out of the country’s total 10 GW), which implies volatility for the electricity sector during dry years, when the country’s lakes run low. Gas follows its hydro capacity, representing 12% of New Zealand’s installed capacity as of 2024 (Enerdata’s Global Energy & CO2 Data).