‘Unhinged’ LNG decision a costly fossil fuel gamble

WWF-New Zealand has slammed the Government’s decision to proceed with a liquefied natural gas facility at the Port of Taranaki despite having no clear plan for how it will be funded – warning it locks New Zealand into long-term fossil fuel dependence and undermines the shift to a secure, renewable energy system. 

“The Prime Minister claims he’s trying to avoid ‘bumper sticker’ energy policy, but ironically importing LNG without knowing who will foot the bill is exactly that. This is a headline fix that looks like action, while locking New Zealand into long-term fossil fuel dependence and deepening our exposure to global price volatility,” says WWF-New Zealand’s Special Adviser on Climate Law and Policy, Teall Crossen.  

“The Government is asking New Zealanders to take a leap of faith on a major new fossil fuel project while refusing to explain how it will be paid for. It’s a shockingly bad decision.” 

“The Government appears to be searching for one standalone fix to dry year risks, while ignoring both the climate science and the wide range of cleaner, more resilient solutions available to strengthen our energy system,” says Crossen. 

The OECD has recently warned that the LNG proposal risks locking in fossil fuel dependence in New Zealand – a warning the Prime Minister debased as “a load of rubbish”.  

Meridian Energy’s Chief Executive has also recently said New Zealand does not need to import LNG to cover electricity supply shortages in a dry year. 

The decision comes as the UN General Assembly recently endorsed the International Court of Justice’s landmark ruling confirming states have legal obligations to act on climate change and risk breaching international law if they continue supporting and approving fossil fuel expansion. 

“Not only does this terminal make little economic sense for Kiwis, it also flies in the face of our trade agreements and undermines our international climate credibility. It’s deranged policymaking,” says Crossen. 

WWF-New Zealand welcomes the recent announcements of Government support to help businesses transition away from gas, as well as funding for new solar panels on schools, but says this progress is undermined by continued investment in fossil fuel infrastructure. 

“Helping businesses shift away from gas is a positive step and absolutely the direction we need to be heading in. But that progress is fundamentally inconsistent with locking in new LNG infrastructure that entrenches dependence on the very fuel we are trying to move away from,” says Crossen. 

“LNG doesn’t solve energy insecurity. It ties New Zealand to unstable international markets, exposes us to price shocks, and risks locking in emissions and infrastructure at odds with a rapidly decarbonising global economy. 

“The answer lies in expanding rooftop solar on homes, farms and businesses; supporting Kiwis to transition away from gas; electrifying transport and homes; and building an energy system that’s cleaner, cheaper, and more resilient for everyone.   

“Today’s announcement is a costly bet on fossil fuels at a time when the world is moving in the opposite direction.”