The centre-right New Zealand coalition government will invest up to NZ$23.5mn ($13.8mn) in two projects run by New Zealand-owned explorer and producer Todd Energy, a firm operating in the nation's Taranaki basin.
Money will come from the country's NZ$200mn Gas Security Fund, resources minister Shane Jones said on 7 September, with the two projects potentially supplying 19.9PJ of gas over 5-9 years.
About 4 PJ/yr produced by the prospective fields could supply about 6pc of annual demand, Jones said.
The McKee Gas Cap project will be loaned up to NZ$16.2mn for drilling and connecting a new gas well, while the McKee-Tariki well will receive a loan of up to NZ$7.3mn for works to convert an existing well to access gas in the deeper Tariki reservoir.
New Zealand in July issued its first new offshore exploration permit since a ban on offshore exploration was overturned last year. But the country's left-wing opposition Labour and Green parties have promised to reinstate the ban if elected in November's national election.
Declining natural gas availability this month led Methanex to announce plans to indefinitely idle its three methanol units in New Zealand with a combined capacity of 2.3mn t/yr, from early 2027.
Years of depleting field production has led the country to prepare for LNG imports from 2028 to cover expected shortfalls.
