Securing Affordable Energy: LNG to keep the lights on and protect jobs

What's at stake

Who feels it

NZ households, businesses (especially manufacturers and dairy processors), energy-intensive industry workers facing job security risk in dry-year events

Money in play

Up to $800 million annual savings on power bills (projected). Facility cost and funding mechanism TBC (Government stated it will not be levy-funded).

Timing

09 June 2026 (announcement); RFP stage launched June 2026; target operational by 2028 for dry-year backup coverage

How it works

Government-led energy infrastructure project; RFP process to select two providers for LNG import facility. No specific statute cited in release.

Key context

Two LNG import facility providers now entering Request for Proposal (RFP) stage — audit supply-chain and energy procurement assumptions for 2028 onwardsProjected $800m annual power bill savings dependent on facility delivery by 2028 — model your cost-of-energy forecasts accordinglyFacility funding model still in development and will NOT be power-bill levy — monitor announcement for capex allocation (central funding, PPP, etc.)Dry-year backup cover is the stated policy goal — watch for any changes to renewable energy targets or Electrify NZ roadmap that may shift this timeline

Wider effects

Electrify NZ (renewable generation reforms); energy security and firm-power policy; manufacturing and dairy sector competitiveness; wholesale electricity pricing framework; fiscal allocation for energy infrastructure.