As the escalating US-Israel war on Iran drives a global fuel supply crisis, New Zealand is eyeing two major – and very different – projects aimed at bolstering its long-term energy security.

While one risks deepening the country’s reliance on the very fossil fuel systems now in turmoil, the other offers a more sustainable alternative.

In February, the government announced plans to develop a liquid natural gas (LNG) import terminal, likely in Taranaki, under its fast-track process.

This would replace New Zealand’s dwindling natural gas supplies, act as a backstop for dry-year electricity shortages and help stabilise power prices.

But it has now been reported that ministers may now be reconsidering the project, as surging global gas prices due to the Middle East conflict undermine its economic case.

Meanwhile, the government last week referred another major energy project to its fast-track consenting panel: a pumped hydro scheme at Central Otago’s Lake Onslow.

Once a government-led initiative, the project is now being steered by a private consortium chaired by former Meridian Energy chief executive and Transpower chairperson Keith Turner.

It would store excess water in a high storage lake when it is plentiful and release it to generate electricity when the hydro lakes are dry, acting as a “battery” to shore up intermittent renewable electricity.

As New Zealand seeks to establish a resilient energy system for........

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