Nov 18, 2025
RNZ
Media
The fuel of ‘last resort’: How imported gas became New Zealand’s first choice

RNZ investigative journalist Kirsty Johnston digs into the liquified natural gas terminal decision and finds that "for a government facing blackouts and business closures in an election year, importing gas is an attractive choice. For others [including Rewiring Aotearoa, whose CEO Mike Casey was quoted in the piece] it's the worst possible option."

As the story said: 

When the government unveiled its long-awaited energy package earlier this year, the centrepiece was a promise to fast-track the import of overseas natural gas. Ministers said it would keep the lights on and protect industry as local gas reserves run dry.
But the response from almost every corner - other than the gas industry itself - was a collective groan. Liquified Natural Gas, or LNG, is an answer of sorts to the country's energy security crisis, but not one most were hoping for.
Not only is imported gas expensive, it is also bad for the climate, and leaves us dependent on volatile global markets.
"LNG is not a good option for New Zealand. It's a duress position, a band-aid," says energy commentator Larry Blair.
Even the government's own independent review warned LNG should only ever be a last resort. Frontier Economics, which led the official Electricity Market Review, warned that importing LNG would expose New Zealand to international price shocks and make local exporters less competitive.
At best, it will buy the country a bit of time while it seeks a replacement for its dwindling domestic gas supply, Blair says. "It's like jamming a finger in the dike to hold back the flood."


Rewiring Aotearoa's CEO Mike Casey said: 

"The energy system and the energy market is failing New Zealanders," says Rewiring NZ chief executive Mike Casey. "The goal has to be finding the lowest cost alternative. And therefore the answer is not LNG - it's a way more expensive outcome."
... Casey believes using what energy we have in a more deliberate way is vital.
"Look at hydro. It's basically a giant battery, and we need to use it more strategically. And that's because the market incentives for those who operate large storage lakes are aligned for profit, not the strategic use of our hydro assets," he says. "The technology we need already exists. What's missing is a plan to join it up."
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