New Zealand Launches Loan Scheme to Help Firms Cut Gas Use

Flag of New Zealand. Taken outside the Beehive, Wellington （Tākuta / Edward Hyde – FLICKR）

New Zealand announced on Monday a new loan guarantee plan to help businesses use less natural gas, as falling gas reserves and higher prices create pressure for industry and energy security.

Finance Minister Nicola Willis said the gas transition loan guarantee scheme is part of Budget 2026, which will be released on Thursday. The scheme will support up to NZ$1.2 billion, or about US$705.2 million, in bank lending.

Under the plan, the government will guarantee 80 percent of eligible loans. Willis said this will make borrowing cheaper for companies that want to move to other fuel sources.

The government has set aside NZ$48 million in Budget 2026 to cover possible losses. To qualify, businesses must cut their gas use by at least 15 percent while keeping production at the same level or increasing it.

Willis said the program is designed to protect jobs, support New Zealand’s economic outlook, and keep more gas available for companies that do not have a practical replacement for gas.

Associate Energy Minister Shane Jones said 12 of New Zealand’s 17 producing gas fields are expected to stop operating within the next 10 years. He also said gas reserves dropped 23 percent over the past year.

Energy Minister Simeon Brown said the Energy Efficiency and Conservation Authority will receive NZ$5.9 million to help businesses study ways to move away from gas.

Officials estimate that if the scheme is fully used, it could reduce gas use by up to 10 petajoules a year.

The government also plans to introduce new laws to make gas supply and demand data more open, which Jones said would help improve market confidence and encourage investment.