Meridian Energy chief executive Mike Roan.
Photo: Meridian Energy
Meridian Energy has told a Parliamentary committee that New Zealand does not need to import liquefied natural gas to cover electricity supply shortages in a so-called dry year.
A proposal to import LNG is being looked at by the government as a way to generate power when hydro lake levels are low and solar and wind power cannot meet demand.
Appearing before Parliament’s Transport and Infrastructure Committee on Thursday, Meridian chief executive Mike Roan told MPs that “from everything we can see, the analysis shows dry-year risk is being managed through the next 10 years”.
He said this was due to a series of agreements the sector had put in place, including the Huntly strategic coal reserve, demand response measures with Tiwai Point aluminium smelter and remaining generation sources.
“So, when we look at LNG… it is not necessary from an electricity perspective,” Roan said.
Roan stressed he was not saying the government should not look at LNG, because there was a gas challenge in New Zealand from declining local gas reserves.
“But that’s an issue for the government and you know, not for the electricity sector or Meridian.”
Contact Energy boss Mike Fuge told RNZ earlier this month he also felt the dry-year risk for New Zealand was reducing.
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