NZ opens $200m Gas Security Fund to boost supply, storage and industry stability

Minister Jones stressed that while New Zealand is expanding renewable energy options, natural gas remains essential for meeting current industrial and household needs.

The New Zealand Government will open applications for its $200 million Gas Security Fund on 12 January 2026, aiming to urgently increase natural gas availability as the country works through a long-term transition to renewable energy. Resources Minister Shane Jones said the fund is designed to deliver rapid improvements in gas supply, storage, and system resilience.

Ensuring Reliable Gas Supply During the Energy Transition

Minister Jones stressed that while New Zealand is expanding renewable energy options, natural gas remains essential for meeting current industrial and household needs.

“Natural gas remains critical in our energy system while we transition to more renewable energy sources,” he said. Industries requiring consistent, high-temperature energy, such as food processing, manufacturing, and heavy industry, continue to depend heavily on gas.

However, declining domestic production has caused sharp increases in costs for businesses and consumers, limiting economic growth. The Gas Security Fund aims to counter these supply pressures by supporting projects that can quickly boost volumes or expand gas storage capacity to ensure availability during periods of peak demand.

Fund to Support Exploration, Production and Storage

The Government recently expanded the fund’s scope from new exploration alone to include:

• Existing gas field enhancements

• Infrastructure to accelerate production

• New or expanded gas storage facilities

• Solutions that improve system resilience or strategic stockpiling

Expressions of interest will be encouraged from operators who can deliver rapid, commercially viable solutions that strengthen national energy security.

Expert Advisory Panel to Guide Decisions

Given the technical and commercial complexities of New Zealand’s gas market, a new Gas Advisory Panel is being formed. The panel will provide strategic and technical advice to Minister Shane Jones and Associate Finance Minister Chris Bishop. Members will be announced soon.

Its role will be crucial in evaluating proposals involving exploration potential, existing field optimisation, pipeline or infrastructure upgrades, and storage feasibility.

Fund Administration and Application Process

The Gas Security Fund will be administered by Kānoa – the Regional Economic Development & Investment Unit within the Ministry of Business, Innovation and Employment (MBIE).

Once the portal opens on 12 January 2026, applicants are encouraged to submit proposals promptly. Further details can be found on the Grow Regions website, and interested parties are invited to engage directly with Kānoa officials.

Supporting Growth and Restoring Sector Confidence

Minister Jones said the fund is a key part of the Government’s effort to restore investor confidence in the gas sector and support businesses that rely on gas for continuous operation.

“We are moving at pace to restore confidence in New Zealand’s gas sector and support businesses that rely on it for their ongoing industrial needs and the benefit of New Zealand’s wider economic growth.”