Luxon said New Zealand was experiencing a \u201crenewable energy boom\u201d but swiftly declining gas supply. There was no good reason for New Zealand to be in this position, he said.<\/p>\n
Prime Minister Christopher Luxon and Energy Minister Simon Watts make the announcement about the plan for a liquified natural gas terminal today. Photo \/ Mark Mitchell<\/p>\n
As gas supplies dwindled, New Zealand had increased reliance on diesel and coal, he said.<\/p>\n
Following the closure of stage one of the procurement process for one of these facilities last year, Watts had approved a shortlist of accelerated-delivery solution submissions.<\/p>\n
Speaking at today\u2019s post-Cabinet conference, Watts said the new LNG import terminal would mean fewer \u201cwinter bill shocks\u201d for Kiwis.<\/p>\n
He stressed that LNG would not be a replacement for renewable energy.<\/p>\n
\u201cLNG will not get in the way of that [renewable energy] goal,\u201d he said.<\/p>\n
The Government is aiming to have a contract finalised by the middle of this year.<\/p>\n
Its factsheet said it was too early at this stage to confirm the location of the facility but the shortlisted submissions are all in the Taranaki region.<\/p>\n
Watts said the estimated cost for the build was $1 billion. The plant would be in play by winter next year, he said.<\/p>\n
A question about what the cost would be to Kiwi households was not answered directly, but Watts insisted the net benefit to households was $50.<\/p>\n
Watts and the Prime Minister did not provide a direct figure but implied that is because the matter is commercially sensitive.<\/p>\n
Watts stopped short of guaranteeing Kiwi power bills would be lower next winter but said advice from officials indicated \u201ca downward pressure\u201d on power prices.<\/p>\n
The emissions profile would go down under increased importations of gas, Watts said.<\/p>\n
\u201cThis is a strategic energy security asset for New Zealand.\u201d<\/p>\n
Luxon said this didn\u2019t preclude expansion in other areas like batteries and renewable projects, \u201cbut we need to get rid of the dry-year risk. If we can de-risk that … that\u2019s the thing that puts a downward pressure on prices\u201d.<\/p>\n
Asked why they did not opt for a cheaper solution like stockpiling more coal, Watts said the Huntly power station was at full capacity for coal and New Zealand also needed more options.<\/p>\n
Luxon has returned to Parliament after a busy few weeks addressing the aftermath of the deadly Mount Maunganui landslides and attending Waitangi. <\/p>\n
Luxon was not at Waitangi for the national day of celebration itself, but attended a parliamentarians\u2019 p\u014dwhiri, where he faced intense heckling during his speech. <\/p>\n
Earlier this morning, Luxon addressed a racist social media post<\/a> by US President Donald Trump.<\/p>\n Trump shared a video to social media portraying Michelle and Barack Obama as apes. He swiftly removed the post but not before it prompted bipartisan backlash in the States. <\/p>\n