Even more doubt is being cast on the likelihood of the government's proposed $1 billion plus LNG terminal actually going ahead, but the Minister previously in charge is still confident it will happen.
Prime Minister Christopher Luxon announced on Thursday Simeon Brown is replacing Simon Watts as Energy Minister. Luxon said this was due to the last few weeks underscoring; “how important energy security is, and as such I will be elevating the energy portfolio to senior minister Simeon Brown.”
In his first press conference since becoming Energy Minister, Brown told reporters; “the reality is that the world has changed since that initial decision was made”.
“The conflict in Iran has changed everything. We will be looking at all of the information and evidence in relation to that decision before proceeding to the next steps.”
Cracks were already appearing on the recently announced import terminal plan, after a push and pull of unaligned commitment between Luxon and Watts over the last week.
In February the Government announced its planned LNG import facility which was anticipated to be operating as soon as 2027 to remove the risk associated with dry years. Meanwhile, among other things, conflict in the Middle East has seen Qatar's Ras Laffan Industrial City - the site of the largest LNG production terminal in the world - hit by missile strikes.
Luxon this week cast doubt on the plan, telling Newstalk ZB, “for me, it’s coming down to the commercial business case …I’m just brutally going to make a decision on the commercial case. If it doesn’t stack up, we won’t be doing it”.
In addition, Finance Minister Nicola Willis said it was; “obvious to everyone that the world has changed since that proposal first progressed through Cabinet".
Shortly after Brown’s comments were made on Thursday, Watts said he did not think Brown’s support for a LNG terminal had decreased.
“Minister Brown equally understands energy as I do, and we both understand that the key issue and problem with the sector is we don't have dry year cover. The only solution that will fix that is an LNG importation terminal.”
If he would be disappointed if the Government chose not to proceed with the LNG plan, Watts said; “Cabinet has made a decision in regards to the LNG terminal, and that's the decision in which, as Minister, I've been executing.”
“... the reality is that we've got a cabinet agreement to get on and do that. Why? Because it fixes our ongoing problem with our energy system. The context of the environment in the Middle East doesn't have any impact on the LNG terminal, and I've got advice that confirms that.
“The reality is, is that that terminal is required because we don't have gas. Cabinet has made a decision, and cabinet hasn't made any other decision other than to support LNG.”
2 Comments
No the world hasn't changed. Geopolitics is still about the rich robbing the poor, might is right, global heating still crashing climate stability and ultimately fossil fuels are finite, as evidenced by the speed we chose to burn through or own national resource. Nothing has changed. Not even the 19th century politicians making outdated decisions.
No.
But something which had been conveniently covered-over, is now in stark view.
Clearly the terminal idea was well named - this is the mechanism whereby ideology wriggles away in the face of physics.
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