Govt considering importing LNG as dire energy shortfall bites
Energy Minister Simeon Brown says the government is seriously considering importing liquefied natural gas to fill an energy shortfall, BusinessDesk reports.
A shortage of supply has sent gas prices soaring. This, combined with low hydro lake levels, has sent wholesale electricity prices to sustained record highs, trading above $800 a megawatt hour this week with numerous spikes higher.
Brown said these were the highest electricity prices in the Western world. He blamed Labour’s ban on new oil and gas exploration and other policies for a “dire loss of confidence in the sector”.
Brown also called on Labour to form a bipartisan approach to restore confidence.
“New Zealand now finds itself in an energy crunch, with dry year conditions being compounded by a low supply of gas, which is critically important at this time, the high electricity prices … are threatening the viability of New Zealand businesses, many of whom export products to the world and the jobs they underpin,” Brown told Parliament.
He cited Winstone mothballing its plant in Ruapehu and Oji considering closing its Penrose operation as recent evidence of the energy situation becoming critical.