Government's LNG Plans Face Scrutiny Over Withheld Document

New Zealand's Chief Ombudsman John Allen has ruled that officials should not have withheld a key document related to the government's decision to proceed with a liquefied natural gas (LNG) terminal. The document, released in full after the ruling, concluded that access to LNG would unlikely affect average electricity prices and that other resources could provide similar energy security.

The ministry had downplayed the consultants' conclusions, calling it a 'draft of an informal working document.' However, Chief Ombudsman Allen found that the document provided 'important context and limitations' for the advice and modelling. He also found that the reasons for withholding it were not valid and that there was 'very high' public interest in releasing it.

The government confirmed its plans for a Taranaki LNG facility in June, citing the need to see off a 'dry year' risk when hydro lake levels are low. The document's conclusions undermined this argument, suggesting that other resources such as coal at Huntly or extra underground gas storage could provide similar energy security.

The climate advocacy group Lawyers for Climate Action had complained about the lack of transparency over the project, which is estimated to cost upwards of $1 billion. The government has attributed a fall in future prices on the energy market to the LNG announcement, but others have attributed it to a glut of renewables coming online.