The New Zealand Government said it will contract to build a liquefied natural gas (LNG) import facility to strengthen energy security and support economic growth, Energy Minister Simon Watts said in a Monday statement.

"New Zealand is experiencing a renewable electricity boom, but a rapidly declining gas supply has left our electricity sector exposed during dry years, when our hydro lakes run low," Watts said.

The Government has shortlisted leading proposals and is progressing to commercial contracting, with the aim of signing a contract by mid-2026. The facility could be operational as soon as 2027 or early 2028.

Watts said that the government will design an import model that brings LNG in large shipments and only when needed, to minimize exposure to international gas prices and keep the door open for new technologies.