Request to Auditor General regarding LNG procurement
Bioenergy Association joined with other members of the Smart Energy Alliance to request the Auditor General to investigate the NZ Government’s ongoing procurement process for the liquefied natural gas (LNG) import facility, and to request that an inquiry be initiated. In short this is because of the following reasons:
- Unwarranted urgency: The urgency of decision-making and procurement is not warranted, particularly when there are clear questions regarding value for money, and there are significant concerns within the local community.
- Value for money has not been demonstrated: Including that lower cost alternatives have not been fully considered; it is unclear if the LNG import facility will actually reduce electricity prices; and the potential chilling effect on the energy transition and impact on international obligations has not been fully considered [BANZ had submitted an alternative bioenergy solution];
- Unacceptable cost risk: Committing to a contract prior to securing the necessary regulatory approvals (whether via enabling legislation or existing processes) and prior to putting in place a cost recovery model in an election year creates unacceptable cost risk for New Zealand and for the project; and
- Inadequate consultation to date: The local community has not been provided with sufficient information and has not been adequately consulted during the procurement process.