Prime Minister Christopher Luxon has warned the Government's proposed liquefied natural gas (LNG) import terminal in Taranaki will only go ahead if it makes strict commercial sense.
A formal procurement process for the energy infrastructure was announced last month.
Cabinet is expected to make a final decision on whether to proceed around the middle of this year.
Speaking to Mike Hosking on Newstalk ZB, Luxon said the Government will seriously consider the options put on the table. He stressed that ministers genuinely want to make sure the business case is right.
"If there's a good business case they'll do it, and if there isn't, they won't," Luxon said.
However, hesitation appears to be growing within the Beehive. Newstalk ZB say they understand multiple ministers have privately admitted that steep international gas prices could force the Government to walk away from the project entirely.
Officials will spend the coming months reviewing the commercial realities before delivering a final verdict to the industry.
If it goes ahead, the LNG import facility would likely be based at Port Taranaki in New Plymouth. The location offers existing deep-water shipping capabilities and direct connections to the national gas network.
Such a project aligns with Taranaki's long-standing role as New Zealand's energy hub.
