Simeon Brown says LNG terminal remains ‘critically important’ after Methanex announces end to NZ operations
New Zealand Energy Minister Simeon Brown has reaffirmed the importance of a proposed LNG import terminal following Methanex's decision to idle its Taranaki plant. The closure of the country's largest gas user highlights the ongoing decline of domestic gas production and raises concerns about energy security during winter months.
Why it matters
The loss of a major industrial gas consumer and the decline of domestic supply threaten New Zealand's energy resilience and electricity market stability.
Energy Minister Simeon Brown says the construction of a liquefied natural gas import terminal remains “critically important” for New Zealand despite the country’s largest gas user planning to wind down operations.
Yesterday, Taranaki-based company Methanex announced it will sell its remaining contractual New Zealand natural gas entitlements through to 2029 and “indefinitely idle” its Taranaki plant next year after 40 years of operation.
The company said its New Zealand operations had grown increasingly untenable due to the ongoing decline in domestic gas availability and uncertainty over progress towards securing new supply.
Appearing on Ryan Bridge TODAY , Brown said Methanex’s closure was “another step in the unfortunate decline of oil and gas in New Zealand”.
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