LNG imports not needed for dry-year cover, Meridian says

Meridian Energy chief executive Mike Roan told Parliament that existing agreements can manage electricity supply in dry years without liquefied natural gas imports.

Meridian Energy has told a Parliamentary committee that New Zealand does not need to import liquefied natural gas to cover electricity supply shortages in dry years.

Meridian chief executive Mike Roan appeared before Parliament's Transport and Infrastructure Committee on Thursday, saying "from everything we can see, the analysis shows dry-year risk is being managed through the next 10 years".

Roan said dry-year risk is being managed through agreements including the Huntly strategic coal reserve, demand response measures with Tiwai Point aluminium smelter, and remaining generation sources. "So, when we look at LNG… it is not necessary from an electricity perspective," he said.

The comments come as the government is looking at a proposal to import LNG as a way to generate power when hydro lake levels are low and solar and wind power cannot meet demand.

Roan acknowledged New Zealand has a gas challenge from declining local gas reserves, but said this is an issue for the government rather than the electricity sector or Meridian. Contact Energy boss Mike Fuge told RNZ earlier this month he also felt the dry-year risk for New Zealand was reducing.