New Zealand enters deal to support additional diesel storage

About this update from Channel Infrastructure Nz Limited

New Zealand's government said on Thursday it would commit NZ$21.6 million ($12.42 million) to the rapid expansion of diesel storage at Marsden Point in the country's North Island as it works to shield the country from fuel supply disruptions linked to the Iran war.The statement said the funding will support facility owner Channel Infrastructure NZ NZX:CHI to increase diesel storage by roughly 90 million litres. Channel Infrastructure currently has 290 million litres of storage in service and a further 350 million litres of available storage in tanks, according to the company.Regional Development and Associate Energy Minister Shane Jones said in a statement the added diesel capacity, equivalent to about eight days of supply, would help New Zealand respond if opportunities arose to secure diesel beyond volumes already expected.“While we are acutely aware of the importance of petrol and jet fuel, it is diesel that is the lifeblood of our economy,” Jones said.Channel Infrastructure, which owns and operates the Marsden Point import terminal, said it was working to bring on the storage in approximately two months.Jones added New Zealand had secure diesel supply until the end of May, but warned storage capacity remained a constraint because much of the infrastructure at Marsden Point had been idle for years.($1 = 1.7391 New Zealand dollars)

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