An additional 93 million litres of diesel storage capacity has been brought into service at Marsden Point, providing New Zealand with a further nine days of diesel demand coverage.
The project is part of an agreement between the Government and NZX-listed fuel import operator Channel Infrastructure, with up to $21.6 million in funding from the Regional Infrastructure Fund to refurbish the tanks.
Channel Infrastructure says it completed the project last week, making the storage available in time for the arrival of the Government’s first diesel reserve shipment.
Finance Minister Nicola Willis says the tanks have been recommissioned ahead of the fuel’s arrival.
“A significant amount of work by a large number of people has gone into getting these tanks ready in a short timeframe so they can store the diesel when it arrives in New Zealand,” Willis says.
“Last week we announced the first of two shipments of diesel which will provide our reserve was bound for New Zealand. That is expected to arrive at Marsden Point in less than a fortnight.
“Knowing these tanks are ready to take this shipment, and the next, is great news.”
A second shipment of reserve diesel is expected to arrive in July. Together, the two shipments will provide enough fuel to cover about nine days of New Zealand’s average diesel consumption.
Channel Infrastructure chief executive Rob Buchanan says the project was delivered over nine weeks with support from a large workforce of Northland contractors.
“This project drew on a wide network of our trusted contract partners, who, along with our people, have developed significant agility around project execution, which enabled us to rapidly respond and deliver increased fuel storage at massive scale on an accelerated timeframe.”
The work included connecting more than 750 metres of new pipework to bring the storage online.
Buchanan says the additional storage has been delivered at a critical time.
“The entire Channel team is proud to have been able to serve the country by enhancing the resilience of New Zealand to any potential fuel supply chain disruptions. The 93 million litres of diesel storage has been delivered at an absolutely critical juncture as the conflict in the Middle East continues to disrupt oil supplied through the Strait of Hormuz.”
Associate Energy Minister Shane Jones says the reserve is designed to help protect New Zealand from fuel supply shocks.
“While we hope we never have to use this reserve, the Government has acted prudently and decisively to ensure that should there be an unforeseen issue with our fuel supply, particularly diesel, New Zealand has enough to keep the economy running in the short-term,” Jones says.
Channel Infrastructure says it expects to commission additional jet fuel storage for Z Energy in July and will still have about 350 million litres of tank capacity available for future fuel security initiatives.
Jones says fuel supply and prices are likely to remain affected while conflict continues in the Middle East.
“As long as the Middle East conflict continues, and for some time after, fuel supply and prices will be impacted. The Government is working to ensure the situation remains as stable as possible here.”
