The Government will enter into an agreement to support an additional 90 million litres of diesel storage at Marsden Point in Northland to boost New Zealand’s fuel resilience as the Middle East conflict continues to affect global fuel supplies.
Senior Ministers signed off on up to NZD 21.6 million from the Regional Infrastructure Fund (RIF) to Channel Infrastructure NZ Ltd.
This financial arrangement will allow Channel Infrastructure, which owns and operates the former refinery site at Marsden Point, to increase its diesel storage capacity by recommissioning storage tanks with a combined 90 million litres.
Channel Infrastructure has assured the Government it can do this within two months. This is an ambitious but doable project which will help ensure New Zealand is well-placed to weather the fuel supply issues it faces.
“While we are acutely aware of the importance of petrol and jet fuel, it is diesel that is the lifeblood of our economy. We know we have a secure supply until the end of May. If the opportunities arise for New Zealand to secure diesel supplies over and above what we are expecting, we need to be able to store it,” said Regional Development and Associate Energy Minister Shane Jones.
“Storage of fuel supplies on a large scale is an issue, given much of what we had has been sitting idle at Marsden Point for a number of years.”
Work is expected to begin within days on the refurbishment of the tanks, which can hold about eight days’ supply. The Government will be keeping a very close eye on progress to ensure it is ready to take diesel as quickly as possible.
The RIF financial support has been secured through funds tagged for projects that have been approved in principle but are not likely to go ahead.
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