The Government plans to build an import terminal for liquefied natural gas (LNG) in Taranaki to fill the gap left by the region’s emptying gas fields.

Minister of Energy Simon Watts said shipping-in LNG would end the “dry year risk” when hydroelectricity lake levels drop, causing energy price spikes.

Natural gas is chilled to -160°C, turning it liquid for ocean tanker transportation.

It’s then pumped ashore for ‘gasification’: heating and expanding 600-fold back into gas, ready for distribution via existing pipelines.

Taranaki Energy Watch said highly explosive LNG is too dangerous near homes and workplaces.

Spokesperson Sarah Roberts said the risk of leaks was greatest during transfer to shore.

If a small leak ignited and ruptured a storage tank the resulting blast would be catastrophic for New Plymouth, she said.

“Even with the smallest of these LNG proposals, the storage tanks could hold 20 times the energy of the huge explosion that decimated so much of Beirut.”

More than 200 people died and 7000 were injured when ammonium nitrate blew up at Beirut’s port in 2020.

“The suburbs of Moturoa, Paritūtū and Blagdon are most at risk if LNG lands at Port Taranaki.”

Roberts said a Floating Storage and Regasification Unit moored away from land and connected to existing offshore gas pipelines would be safer and cheaper.

“They are locking in gas, making us pay for it, without showing it works environmentally or economically."

"But if they are deadset on this bad idea, don't put it alongside us at New Plymouth’s port.”

The energy minister said LNG was safely handled, converted to gas, and transported in many countries.

Watts said he expects to sign a contract for the LNG terminal in the middle of the year.

The minister wouldn’t discuss the Government’s shortlisted proposals, citing commercial sensitivities.

But he said there were a range of ways to build and operate an LNG terminal.

“It is very possible that an LNG import facility in New Zealand will be ship-based – a floating storage and regasification unit, or floating storage unit.”

The Government was talking regularly with the LNG terminal at Port Kemblar in New South Wales and had spoken with the Singaporean terminal.

“All the accelerated delivery solution proposals are located in and around Taranaki,” Watts confirmed.

Climate Justice Taranaki spokesperson Tuhi-Ao Bailey said that made Port Taranaki the most likely site, with Pātea or one of three offshore production stations also possible.

“Both ports have lots of Māori and low-income residents who’ve already suffered years of boom-and-bust industry, and impacts of industrial chemical exposure,” Bailey said.

Bailey is also Taranaki iwi's representative on the Policy and Planning committee at Taranaki Regional Council, which owns Port Taranaki.

She said locals shouldn’t bear the risk of “an unaffordable, gas-emitting, highly explosive LNG plant, likely right next to a marine reserve and popular beach in the middle of our city.”

“New Plymouth is the sunniest place in the country.”

“The government instead should be investing in decentralised and affordable solar power, and building energy efficiency, public transport and local economies.”

Taranaki iwi extends along the back of the Port industrial area, from Paritūtū around the coast.

Its environmental management plan says: “Taranaki Iwi supports, and will advocate for, clean technology initiatives and activities that reduce greenhouse gas emissions”

Te Kāhui o Taranaki tumu whakarito Damon Ritai said the iwi agency required more research and due diligence before commenting on the LNG terminal.

Port Taranaki mana whenua Ngāti te Whiti and their wider Te Ātiawa iwi are also yet to comment.

Watts said the Government would design an import model bringing in "large shipments only when needed" which would later become a "fuel source for industrial, commercial and residential users".

A levy on power companies would pay the cost of perhaps a billion dollars for the LNG plant.

That will hit power bills, but the Government said the hike would be balanced out by stabilised energy prices.

The Ministry of Business Innovation and Employment advised the terminal would effectively cap gas prices.

Watts has promised modest household savings, calculated at less than a dollar a week.

LDR is local body journalism co-funded by RNZ and NZ On Air.