First Gas Security Fund projects announced
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.
The fund will invest up to $23.5 million in two 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 five to nine years. Together, at peak production, they could provide around four petajoules a year.
That’s equivalent to about six per cent 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
McKee Gas Cap
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.
If successful, the project could provide up to 17.3 petajoules of additional gas reserves over nine years.
McKee-Tariki Production Well
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.
If successful, the project could add 2.6 petajoules of gas reserves. It could also support a future gas storage project, improving flexibility in the gas system.
The Government’s investment will be provided through time-limited loans, with Todd Energy contributing around 30 per cent of the cost of each project and covering any cost overruns.
Published: 7 September, 2026