New Zealand Government issues first Gas Security Fund loans

The New Zealand Government has announced the first recipients of its $200 million Gas Security Fund. Todd Energy will receive up to $23.5 million in time-limited loans to support two gas projects in Taranaki.

The funding will support the McKee Gas Cap project, which involves drilling and connecting a new well, and the McKee-Tariki Production Well project, which aims to access deeper gas reserves. Todd Energy is expected to contribute approximately $10.1 million of its own capital toward these initiatives.

If successful, the projects could unlock up to 19.9 petajoules of additional gas reserves over five to nine years. Officials expect gas to be flowing by the end of 2027, providing roughly 6 percent of New Zealand’s expected gas production for 2027. The investment is intended to maintain domestic energy supply during the transition to renewable energy.