Colin Ambler/cvnznews.com
Government backs new gas projects as ministers say energy security must come before politics
New Zealand’s push for a more reliable energy supply has taken a step forward, with the Government approving funding for two new gas projects in Taranaki — a move ministers say is about keeping the lights on while the country transitions to renewable energy.
The projects, run by Todd Energy, will receive up to $23.5 million in time‑limited loans from the Government’s $200 million Gas Security Fund. Todd Energy will co‑invest, sharing the risk of drilling and development.
Resources Minister Shane Jones says the investment could unlock up to 19.9 petajoules of additional gas over the next decade — enough to steady the country’s energy supply during dry years, winter peaks, and periods when renewable generation dips.
“These projects could deliver around four petajoules a year at peak production,” Jones said. “That’s roughly six percent of New Zealand’s expected gas production in 2027.”
The first project, the McKee Gas Cap development, will receive up to $16.2 million to drill and connect a new well, with Todd contributing nearly $7 million. The second, converting an existing well to reach deeper reserves in the Tariki formation, will receive up to $7.3 million, with Todd adding $3.1 million.
Associate Finance Minister Chris Bishop says the goal is simple: keep energy affordable and reliable for households and businesses.
“In the first year alone, these projects could deliver enough energy to power more than 80,000 homes,” Bishop said. “Reliable energy is fundamental to a productive economy. Businesses need confidence that the power will be there when they need it.”
For everyday New Zealanders, the move is pitched as protection against blackouts, price spikes, and strained electricity supply — especially as the country leans harder into renewables.
Critics may question continued investment in gas, but ministers argue the projects are a practical bridge while renewable infrastructure scales up.
Seventeen proposals have been submitted to the Gas Security Fund since January, with more announcements expected soon.
Both projects aim to have gas flowing by late 2027.
