Budget 2026 initiatives support gas-using businesses

A new Gas Transition Loan Guarantee Scheme will support up to $1.2 billion of bank loans to help eligible businesses transition away from or reduce their natural gas use, freeing up gas supply for other users as a result. Under the scheme, the Crown will guarantee 80 percent of each supported loan in return for banks passing on lower interest rates to borrowers. This will make loans more affordable for firms wishing to switch fuel sources. The scheme is expected to be operational from July or August 2026 and will be available for 3 years.

To be eligible for the scheme, businesses must be operating in New Zealand and have annual gas use of at least 1000GJ. The scheme will support investments in energy efficiency, fuel switching, and other technologies that reduce natural gas (piped gas) consumption. Supported projects must deliver at least a 15 percent reduction in natural gas use, and that reduction must come from genuine efficiency improvements or fuel switching - not reduced production. There is a $50 million maximum borrower limit.

Budget 2026 also provides $5.9 million to enable the Energy Efficiency and Conservation Authority (EECA) to provide wraparound support to businesses to help build the pipeline of investment-ready projects. This will include providing expert, tailored advice and support on gas efficiency, performance and options for switching fuels.

Existing EECA resources and tools to support gas-using businesses are already available. You can learn more on the EECA website:

Support for gas users(external link) — Energy Efficiency & Conservation Authority

The Government has also announced its intention to pass the Gas Transparency Bill later this week. Given the urgent state of our domestic natural gas supply, it’s never been more important for the gas market to have good quality information so businesses can make informed and efficient planning and investment decisions.

Gas reserves decline to lowest level on record

The Bill adds a regulation-making power to the Gas Act requiring industry participants to disclose critical information on the gas market to regulators and in some cases to other market participants. The Government will consult on the specific information requirements soon.

Read the Ministers’ Press Release:

Loans to help businesses transition away from gas(external link) — Beehive.govt.nz