New Zealand Secures Energy Supply with $23.5 Million Gas Fund Investment
New Zealand is taking steps to secure its energy supply through the Gas Security Fund, which has approved two projects for funding. The fund will invest up to $23.5 million in projects run by Todd Energy, a New Zealand-owned explorer and producer operating in Taranaki.
The McKee Gas Cap project will receive a loan of up to $16.2m for drilling and connecting a new gas well, with Todd Energy contributing almost $7m. The McKee-Tariki Production Well project will receive a loan of up to $7.3m toward converting an existing well to access gas in the deeper Tariki reservoir, with Todd Energy contributing about $3.1m.
The projects are expected to provide around 4 petajoules per year at peak production, equivalent to around 6 percent of New Zealand's 2027 expected gas production. If successful, both projects are expected to have gas on stream by the end of 2027 and deliver the equivalent energy needed to power more than 80,000 New Zealand households for a year.
The Gas Security Fund is designed to bring the gas needed to market more quickly and improve the reliability of electricity generation while the country continues its transition to a lower-emissions economy. The fund has received strong interest, with 17 proposals submitted since it opened in January, and more funding announcements are expected soon.