First Gas Security Fund projects announced
Published: 15 September, 2026
Two projects in Taranaki could bring New Zealand a step closer to securing its ongoing energy supply with the support of the Gas Security Fund.
Todd's McKee Mangahewa Production Station in North Taranaki. Photo credit: Todd Energy.
The fund will invest up to $23.5 million in 2 projects run by Todd Energy, a New Zealand-owned explorer and producer.
If successful, both projects are expected to have gas flowing by the end of 2027, unlocking up to 19.9 petajoules of gas reserves over 5 to 9 years. Together, at peak production, they could provide around 4 petajoules a year.
That’s equivalent to about 6% of New Zealand’s 2027 expected gas production, or the energy needed to power more than 80,000 New Zealand households for a year.
Gas continues to support electricity generation and the energy needs of businesses, households and essential services as New Zealand transitions to lower-emissions energy sources.
A reliable gas supply is particularly important during periods of high demand, such as winter peaks and dry years when renewable electricity generation is lower.
Both projects will use Todd Energy’s existing fields and infrastructure, providing one of the quickest ways to bring additional gas to market.
The projects
The McKee Gas Cap project will receive a loan of up to $16.2 million towards a total project cost of $23.2 million.
The project will drill and connect a new well targeting gas in the McKee reservoir. Todd Energy will contribute almost $7 million.
The McKee-Tariki Production Well project will receive a loan of up to $7.3 million towards a total project cost of $10.4 million.
The project will convert an existing production well to access gas in the deeper Tariki reservoir. Todd Energy will contribute approximately $3.1 million.
The Government’s investment will be provided through time-limited loans, with Todd Energy contributing around 30% of the cost of each project and covering any cost overruns.
These are the first investments announced through the fund. As at the end of August 2026, the fund had received 17 proposals since opening in January 2026.
The Gas Security Fund is administered by Kānoa, the Regional Economic Development & Investment Unit within the Ministry of Business, Innovation and Employment.
Investment decisions are made jointly by the Minister for Resources and the Associate Minister of Finance, supported by advice from an independent Gas Advisory Panel.