New Zealand plans to sign a contract for its first liquefied natural gas (LNG) import plant before the November elections, according to Bloomberg Markets. The government is counting on lower global LNG prices to make this fuel an affordable and reliable backup energy source for renewable electricity.
Energy Context
The project aims to diversify the country's energy sources and reduce its dependence on fossil fuels. New Zealand is seeking to achieve ambitious goals in reducing greenhouse gas emissions.
Global LNG prices are currently low, making this fuel more attractive to countries seeking to diversify their energy sources. New Zealand hopes that the construction of this LNG import plant will contribute to stabilizing its energy supply and reducing its exposure to fluctuations in fossil fuel prices.