Marsden Point could become the heart of a bold vision to boost New Zealand’s fuel and energy security and an attractive option for overseas investors seeking to be part of economic growth.
Resources, Regional Development, and Associate Energy Minister Shane Jones said New Zealand is a small and remote nation. Its reliance on petrol, diesel and jet fuel imported from overseas after the Marsden Point refinery shutdown carried risks.
Global and domestic supply chain disruptions, price shocks and ageing infrastructure could cost the New Zealand economy billions of dollars.
The Cabinet will consider various options to protect the country better against these risks. Options include creating energy precincts and special economic zones (SEZs) widely used overseas.
Channel Infrastructure NZ, formerly Refining NZ, has already been working to turn the Marsden Point refinery site into an energy precinct. Creating an SEZ there would help ensure New Zealand’s fuel and energy resilience and provide an attractive option for overseas investors.
SEZs, which are expected to be considered by the Cabinet in the first half of this year, could include business-friendly regulations, infrastructure and facilities, investment support, and customs and trade facilitation.
These zones would not be restricted to energy sites. They could apply to any strategically important areas of the country where infrastructure, ease of doing business, and investment are critical to New Zealand's economic interests.
A Fuel Security Study released by Jones detailed the risks of an insecure fuel supply and the negative impacts disruptions could have on Kiwis and the economy. Also detailed in the report were possible actions that could be taken to mitigate the risks and the impacts.
A separate report detailed an investigation into reopening the Marsden Point refinery, which was agreed upon in coalition negotiations between New Zealand First and the National Party.
“The Government will have to carefully weigh up the costs and benefits of the actions suggested in the fuel study. These reports show there are going to have to be trade-offs if New Zealand is to have secure fuel supply. The reports will also be incredibly helpful in forming our Fuel Security Plan, being developed this year,” said Jones.
“Channel Infrastructure released its energy precinct concept in October last year which contained a number of exciting options, including a biofuel refinery. If SEZs can help smooth the path for prospective investors and tenants, the Government is willing to consider them, along with other options.”
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