Businesses will be able to access cheaper loans to help reduce their dependence on gas as part of a new scheme in Thursday's Budget.
The move was announced by ministers on Monday, along with a promise of a law change forcing the gas industry to provide better information on supply and demand.
Under the lending initiative, the government would guarantee 80 percent of eligible loans, allowing banks to offer lower interest rates to companies switching to alternative energy sources, such as electricity or bio energy.
Finance Minister Nicola Willis said the Budget would put aside $48 million to cover potential losses, unlocking an estimated $1.2b in bank loans.
"New Zealand has seen some gas-dependent manufacturing businesses close, citing the cost of energy as a major factor," Willis said.
"By assisting others to move to alternative fuel sources, the government can help preserve jobs, improve New Zealand's economic outlook, and leave more gas available to firms who have no viable alternative to gas."
The Budget would also set aside another $5.9m dollars for the Energy Efficiency and Conservation Authority (EEC) to support businesses exploring alternatives.
Manufacturers, hotels, growers and aged care facilities would be among those which could draw new lending, up to a maximum of $50m each. Re-financing would not be included.
Businesses using more than 1000 gigajoules of gas a year would be eligible and would have to cut that use by at least 15 percent while maintaining or increasing production.
The scheme would be available for three years with loans to be repaid within a decade, subject to bank terms.
Associate Energy Minister Shane Jones said the government would also pass legislation, as part of Budget changes, requiring greater disclosure of gas supply and demand information to regulators and others.
"The most recent figures show a 23 per cent decline in New Zealand's gas reserves in the past year and production this year is now expected to be 15 per cent lower than expected at the beginning of the year," Jones said.
"Fragmented and incomplete information on supply and demand is weakening market confidence and contributing to upward pressure on prices."
Official would seek feedback on the new disclosure requirements after the Gas Transparency Bill was passed, with regulations to be in place by the end of the year.
"Good information supports good policymaking. Improved transparency will support the government and market participants to consider their options and make smart investments," Jones said.
Energy Minister Simeon Brown said 12 of the 17 currently operational gas fields in New Zealand were expected to stop producing within 10 years.
"That's why this government is working hard to shore up domestic gas supply and fast-track clean energy generation projects, while undertaking a procurement process for an LNG importation facility."
