The facility’s estimated cost of up to $1 billion was to be paid via a levy on electricity.
By late March, the plan had been thrown into doubt after the war in the Middle East sent LNG prices skyrocketing.
But in June, Brown said the Government had reaffirmed its position to build the LNG facility and intended to sign a contract before the end of the year.
Brown said the procurement process had been reduced to two potential candidates.
He also said the Government would scrap the controversial levy on power bills and find a way for the gentailers to pay for the facility.
A Cabinet committee met to discuss the terminal this week and agreed no decision would be taken this term.
There are two tracks the decision could go down: the first is continuing the MBIE-led procurement process begun this year. The second is a gentailer-led proposal.
A Government source said the gentailers proposed exploring their own procurement of an LNG import terminal, alternative thermal back-up or a mix of the two. Other sources confirmed the scheme but did not elaborate on details.
The final decision on whether to progress the MBIE procurement or allow the gentailers to find their own dry-year solution has been left to next term, pending the right-wing coalition returning to Parliament.
It’s understood the Government would likely still need to underwrite investment in an LNG facility either way.
When asked for comment, Contact and Mercury didn’t deny that a gentailer-led procurement was on the table.
Contact chief executive Mike Fuge said: “Contact believes passionately that the solution to dry year, and other system risks, is multiple energy sources to be held as strategic reserves.
“This includes increased coal storage, more flexibility in hydro operating ranges, more bridged diesel supply, commercial arrangements for industrial demand response and right-sized LNG import.”
Contact CEO Mike Fuge says his company believes the country needs multiple energy sources to be held as strategic reserves. Photo / Dan Hutchinson
A Mercury spokesperson said: “We’ve had discussions with various parties around potential contributions toward LNG terminal costs, if this approach was to be pursued by the Government.”
Meridian said it was unable to comment and Genesis did not respond.
Speaking to reporters yesterday, Act leader David Seymour said it would be “irresponsible” for the Government to sign a contract before the election.
New Zealand First leader Winston Peters said not making a decision at this stage was agreed upon by all three coalition parties.
Troy Matich is a political reporter with Newstalk ZB, working from Parliament’s press gallery. She joined NZME in 2025, previously working for RNZ as a producer for Morning Report.