The Government has unveiled a new loan guarantee scheme aimed at helping businesses reduce their reliance on natural gas, as it says New Zealand faces declining gas reserves and rising energy prices.
Finance Minister Nicola Willis, Energy Minister Simeon Brown and Associate Energy Minister Shane Jones announced the Gas Transition Loan Guarantee Scheme as part of Budget 2026.
The initiative is expected to unlock up to $1.2 billion in bank lending for businesses seeking to transition from gas to alternative energy sources such as electricity or bioenergy.
Under the scheme, the Crown will guarantee 80 per cent of eligible loans, allowing banks to offer lower interest rates to businesses making the switch. Budget 2026 has allocated $48 million to cover potential losses from the programme.
Willis said the move was designed to protect jobs, support economic growth and preserve remaining gas supplies for industries that cannot easily transition away from gas.
The Government said several gas-dependent manufacturers had already shut down due to rising energy costs, and the scheme was intended to prevent further closures by helping businesses invest in energy efficiency and alternative fuel systems.
Brown said the Energy Efficiency and Conservation Authority would receive an additional $5.9 million to assist firms assessing transition options.
Eligible businesses must currently use at least 1000 gigajoules of reticulated natural gas annually and achieve a minimum 15 per cent reduction in gas use while maintaining or increasing production levels.
The Government said businesses likely to qualify include food processors, brewers, hotels, aged care facilities and commercial greenhouse operators.
The announcement comes as New Zealand’s gas sector faces mounting pressure, with 12 of the country’s 17 operational gas fields expected to cease production within the next decade. The Government said gas reserves had fallen 23 per cent over the past year, while production forecasts for this year were now expected to be 15 per cent lower than initially projected.
Jones also announced plans for new legislation requiring gas industry participants to disclose more detailed supply and demand information, saying incomplete market data was undermining confidence and contributing to higher prices.
The proposed Gas Transparency Bill is expected to introduce mandatory disclosure requirements later this year following consultation led by the Ministry of Business, Innovation and Employment.
The loan guarantee scheme will operate for three years, with individual loans capped at $50 million and repayment terms expected to extend up to 10 years.
Image credit: KWON JUNHO
Insanity
I can think of a number of things to invest $1.2 billion into.
Reduce the debt.
Somebody please give me a smack!
In times of Abyssmal energy failure, the honourables Nicola Willis, Energy minnister Simeon Brown and ass ciate Shane Jones think it’s a good idea to pollitick more fuel off the market.
New Zealand is facing a wall.
Nicola willis’ honourable Ministry of Business, Innovation and Employment (MBIE) led for years by Carolin Tremain, now by treasury stooge Nic Blakeley, explicitly states they (MBIE) will not publish the ship-level consignment product details of the ghost fleet they trick us with. Ships might carry ‘petroleum products’, but that might be the Vaseline supplies for the beehive.
The smokscreen the govt is creating is only to hide their dumb but cunning, useless but dangerous a*ses. If people would know the seriousness of the situation they would riot today rather than in 3 weeks.
But make no mistake: this will be the downfall not only for Willis & Co. ‘Leaders’ like that lead societies into demise.
Just as well: too ignorant to know history, too arrogant to fear what societal collapse predicts.
For all of them.