The New Zealand Government has agreed to loan Todd Energy – the country’s largest gas provider – up to NZ$23.5 million to support two Taranaki-based gas projects with a combined peak annual capacity of 4 PJ.
“The two projects in our McKee [gas] field represent further investment in the region’s energy sector, using established assets, infrastructure and local capability to help bring additional … supply [online],” Todd Energy said on 7 September.
The company will build one gas well and upgrade another to access deeper resources, at McKee, with approximately 70% co-funding from the Government. It could produce up to 19.9 PJ over a decade at its new and upgraded wells, according to Resources Minister Shane Jones.
“[Todd Energy’s] projects will help keep domestic, commercial and industrial users operating, especially during periods of high demand, such as winter peaks or dry years,” Jones said. “Businesses need confidence that the energy they depend on will be available when they need it, enabling them to plan ahead, invest and grow,” Jones added.
The Government’s gas investments come one week after Canadian producer Methanex – New Zealand’s largest gas user – indefinitely idled its Motunui methanol plant because of gas supply challenges.
Methanex’s New Zealand methanol operations are unsustainable because of gas availability declines and the lack of a pathway to new supply, the company said on 1 September. But it will not sell its methanol plant, the company added.
Methanex paused Motunui production three times – for a total of eight months – between August 2024 and July 2026 to free up gas for power generation.
New Zealand businesses produced 21 PJ of gas in April-June 2026, down from 26 PJ and 31 PJ over the same periods in 2025 and 2024, respectively, data from the Ministry of Business, Innovation, and Employment (MBIE) show.
The country’s non-electricity-related gas consumption reached 55 PJ in 2025, down from 58PJ a year earlier, MBIE data show.
By Avinash Govind