The first of two shipments of New Zealand’s diesel reserve is now on its way to New Zealand.
The fuel was loaded on the 31st of May and is now en route to Marsden Point in Northland, where it is expected to arrive mid-June. The second shipment is expected to arrive in early July.
Channel Infrastructure is continuing work to refurbish two former crude oil tanks at Marsden Point to create around 93 million litres of capacity for the diesel. The tanks will be ready to receive the fuel upon the first shipment's arrival.
Together, the two shipments represent around nine days’ worth of typical diesel consumption for the country.
The additional supply will not count towards the fuel companies’ minimum stockholding obligations, and will be controlled by the Government.
Finance Minister Nicola Willis said the reserve will strengthen New Zealand's fuel security and resilience.
“Diesel is critical to keeping New Zealand moving. It powers freight, agriculture, construction and many of the services New Zealanders rely on every day," said Willis.
"Having additional diesel available in New Zealand provides greater resilience and gives New Zealanders confidence that we are better prepared for potential supply disruptions."
At the same time, Associate Energy Minister Shane Jones mentioned that The Crown and Z Energy agreed that the company will own and manage the reserve stocks. How and when the reserve is used will be decided by ministers.
The refurbishment of the tanks at Marsden Point is being paid for by up to NZD 21.6 million from the Regional Infrastructure Fund.
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