New Zealand’s National Party-led government has unveiled plans to introduce LNG imports as part of a sweeping strategy to stabilise the country’s electricity market and guarantee reliable energy supplies during periods of low hydro generation. The move marks a major shift in national energy policy for the country, aimed primarily at addressing high power prices and shoring up security of supply. 

Minister of Finance Nicola Willis said in a statement on the party homepage that the government was prepared to inject capital into energy companies in which the Crown holds majority stakes, including Genesis Energy, Mercury and Meridian, to enable critical investment in electricity infrastructure. “Reliable and affordable energy is key to New Zealand’s prosperity”, Willis said. “Energy powers every part of our economy, from households to high-value industries, and will increasingly determine our ability to compete in the global economy”. 

Willis confirmed she had written to the three mixed-ownership model firms to assure them that the government would back “strategic and commercially rational investments that support energy security”.