Serious questions remain on LNG facility – Labour

The Government is rushing into a multi-billion dollar commitment to import gas without explaining how relying on volatile international markets will lower costs for Kiwis, or ultimately how it will be paid for.

 

“Christopher Luxon has failed to explain how locking New Zealand into expensive imported gas, rather than developing options here at home, will actually bring down power bills for Kiwis,” Labour energy and resources spokesperson Dr Megan Woods said.

 

“New Zealand’s energy security is vital, but an LNG facility locks New Zealand to international gas prices that we have no control over, with no evidence that this is the most secure and cost-effective option for Kiwi households.

 

“There are real local alternatives and these need to be examined. Genesis has told Parliament that an upgrade of the existing Huntly power station could do the same job for less money, using New Zealand biomass fuel and creating New Zealand jobs.

 

“Investing in locally generated energy would do more for long-term energy security than sending money offshore to import gas from volatile parts of the world.

 

“There is also real uncertainty about how this will be paid for. The Government has finally admitted that its initial plan to charge Kiwi households for the LNG was out of touch. New Zealanders deserve to know what they’re on the hook for before a multi-year contract is hastily signed.

 

“You cannot make power cheaper with expensive imported gas. Investing in affordable renewables generated right here in New Zealand is how you bring down power bills for good.

 

“Show us the modelling, or admit this is a gamble with struggling families’ money,” Dr Megan Woods said.