Gas Security Fund

The Gas Security Fund (GSF) could support:

• short-term projects from 1 to 7 years such as drilling in existing fields and upgrading production facilities 
• medium-term projects from 7 to 10 years such as exploration and appraisal drilling
• long-term projects from 10+ years such as greenfield exploration beyond Taranaki, and
• gas storage projects that help stabilise supply and manage seasonal demand.

Applicants are encouraged to procure locally sourced materials, supplies, and labour, so the investment benefits regional economies.

Investment decisions will be made jointly by the Minister for Resources Hon. Shane Jones and the Associate Minister of Finance Hon Chris Bishop, supported by an independent Gas Advisory Panel with in-depth knowledge of the gas sector.

The fund is administered by Kānoa – Regional Economic Development & Investment Unit (Kānoa) within the Ministry of Business, Innovation and Employment (MBIE). 

Cabinet has agreed that investments through the GSF will be made within the following parameters: 

• Investments will be commercial in nature (e.g. expected to generate a return on investment).
• A portfolio of investments, as outlined in the business case, will be sought that:
  • prioritise options to accelerate or increase the volume of gas to market, including a nearer timeframe than is possible with new field development
  • support the flexibility and deliverability of gas in a future low volume market, which could include gas storage
  • respond to energy security of supply and apply a strategic, system-wide lens to investments
  • enable the exploration and/or appraisal of prospective new fields (including fields that produce liquids in addition to gas), to ensure gas remains available to support the transition to a low emissions economy
  • will not involve the Crown becoming a permit operator or require significant involvement in the managerial/operational control of assets/facilities
  • will be made within appropriate guardrails including the need for advice from an expert advisory panel and legal advice on potential risks (including liability) and compliance with our international obligations
  • investment actively encourages the use of regional procurement and regional labour market capability wherever possible.

A wide range of investment proposals are welcome for application to the Gas Security Fund (GSF) for projects that can achieve one or more of the priorities.

A range of financial instruments will be considered to support the objectives of the GSF.

Read the Cabinet paper and business case for the Gas Security Fund:

Business Case: Commercial Co-investment to Bring New Gas to Market [PDF, 3.3MB] — MBIE.govt.nz

Business Case: Commercial Co-investment to Bring New Gas to Market – Minute of Decision [PDF, 348KB] — MBIE.govt.nz