Paul Goldsmith and Willie Jackson battle it out on the politics panel with Ryan Bridge. Video / Ryan Bridge TODAY
The Government has struck a deal with Channel Infrastructure to enable an extra eight days’ of diesel to be stored at Marsden Point.
Channel has agreed to expedite the refurbishment of tanks at its import terminal to enable an additional 93 million litres of diesel to be stored inabout two months’ time.
The Government has put $21.6 million aside to lease the remediated tanks until 2028.
It is exploring ways of buying additional diesel to that which importers, Z Energy, BP and Mobil, are already bringing into the country.
Fuel imports to New Zealand haven’t been disrupted by conflict in the Middle East to date, but supply could be impeded in the future.
The Government might struggle to limit fuel use pre-emptively, because there is limited fuel storage space.
Indeed, it is looking to secure more storage space offshore, as well as at Port Taranaki.
Funding to lease storage space from Channel will come from the Regional Infrastructure Fund, at the expense of unnamed projects that had been approved but considered unlikely to go ahead.
Associate Energy Minister Shane Jones last week talked to the Herald about the fact the Government was working with Channel about securing more fuel storage space.
“This is an ambitious but doable project which will help ensure New Zealand is well-placed to weather the fuel supply issues New Zealand faces,” he said.
Minister Shane Jones teased the announcement earlier this week. Photo / Mark Mitchell
While acknowledging the importance of petrol and jet fuel, Jones described diesel as the “lifeblood of our economy” and said New Zealand’s current supply could last until 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.”
In an announcement to the NZX, Channel chief executive Rob Buchanan said work on the storage tanks would begin immediately.
“The additional storage, once delivered, will enhance resilience against supply chain disruptions and help enable New Zealanders to access the critical fuels they need to keep moving,” he said.
“The pace at which our team has been able to develop these solutions demonstrates the adaptability of our team and contractors in Northland, highlighting the region’s vital role in supporting national energy security.”
Buchanan said details of the contract with the Government were “still being finalised”.
Channel currently has 300 million litres of fuel storage space in use.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
Jenée Tibshraeny is the Herald’s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
