Giles
Dexter Political reporter
ACT
and New Zealand First have all but confirmed a decision on
whether the government should underwrite a new liquefied
natural gas terminal has been put off until after the
election.
The government had been intending to sign a
contract for the LNG terminal before the election, so it
could be up
and running by mid-2028.
The intent is so the
country has back-up to mitigate dry-year risk, but the
government has had to back down on introducing levy to pay
for the terminal.
The energy minister, Simeon Brown,
has previously said the a contract could still be signed
during the election campaign.
A Cabinet committee had
met on Wednesday morning to discuss the plans.
On
Wednesday afternoon, New Zealand First leader Winston Peters
said no decision had been made.
“The Cabinet position
was not to make a decision today, and that’s where the
matter sits at this point in time, and that’s precisely and
totally what the decision was. So any other variations and
translations are false.”
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Peters
confirmed that was the collective decision of all three
parties at the sub-committee, and that there had been no
pushback.
He would not say what his preference was,
but it was a “possibility” he would express a view on the
campaign trail.
ACT leader and deputy prime minister
David Seymour said ACT’s position was that the government
got the best possible deal, and it would be responsible to
keep its options open.
“I don’t know that a deal is
possible before the election,” he said.
It did not
mean ACT opposed work continuing on the terminal needed to
stop, however.
“There
can be progress. I mean, the government is carrying out a
tender, and that can continue. But it doesn’t mean that you
make your decision before the election,” Seymour
said.
He said signing a contract before the election
would be “irresponsible.”
Brown would not talk about
what was discussed in Cabinet or Cabinet committees, and
said he would have more to say when decisions were
made.
“Ultimately the process will, to some extent,
dictate the timing,” he said.
Methanex, which was at
times using close to half the country’s natural gas supply,
is closing its Taranaki plant next year.
Genesis
Energy has since announced it has picked up major gas
contracts that run from March next year to December
2029.
Brown said that may “provide some relief,” but
the government would continue to work through the LNG
process.
“There’s multiple steps that need to be taken
before a final contract can be signed, regardless. But there
are steps that need to be taken. That process, as I have
said, is
underway.”
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