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New Zealand will construct an LNG import facility in Taranaki to enhance energy security and economic growth. The facility is set to be operational by 2027 or early 2028, with a contract expected to be signed by mid-2026.

The initiative aims to tackle a decline in gas supplies and reduce reliance on coal and diesel, which has led to higher electricity prices. The government anticipates an economic benefit of NZ$1.2 billion annually by 2035 and the protection of about 2,000 jobs. The project will be funded through a levy on the electricity sector, expected to reduce power spikes and improve supply reliability.