Channel’s team and contractors are working up to seven days a week to finish the project by the end of May, providing large-scale storage in a highly compressed timeframe, said chief executive Rob Buchanan.
The work included cleaning the tanks, connecting them to Channel’s diesel infrastructure, and installing instruments and pumping systems to move fuel through the supply chain.
The two tanks were previously used to store crude oil when the refinery was operating.
Having skilled people in Northland was very important to the project, which could not have happened without support from key partners, including Culham Engineering, Dialog Fitzroy, Intergroup, ISS, McKay, SGS and United Civil, Buchanan said.
“You just have to look at how quickly teams from businesses across the region have jumped on board to help us – we now have teams engaged up to seven days a week to make sure we can deliver this expedient solution as fast as safely possible,” he said.
Channel Infrastructure's site at Marsden Pt will be able to store enough diesel to cover nine extra days of use. Photo / Dean Purcell
The storage will form a critical part of New Zealand’s fuel resilience, helping protect against supply chain disruptions and ensuring Kiwis can access the fuels they need to keep moving, Buchanan said.
“I am immensely proud of the way our people and contractors in Northland have come together to get stuck in and get to work on this major project for the benefit of New Zealand.”
Channel expected to make about $8 million in extra revenue this year from the additional storage, but told the stock exchange its bottom line was unlikely to change due to fuel demand uncertainty.
It retained its 2026 earnings guidance of between $95m and $100m.
The required work was significantly less than for a full tank refurbishment, which would typically take between 18 and 24 months, with the cost funded within Channel’s existing debt facility.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
