New Zealand Moves to Pour USD12.4M Into Diesel Reserves

(MENAFN) New Zealand is moving swiftly to shore up its fuel security, with the government committing up to 21.6 million New Zealand dollars — roughly 12.4 million U.S. dollars — to expand diesel storage capacity in the country's Northland region as global supply chains remain rattled by the Middle East conflict.

Regional Development and Associate Energy Minister Shane Jones announced Thursday that the funds, drawn from the Regional Infrastructure Fund and recently greenlit by senior ministers, will be directed to Channel Infrastructure NZ Ltd — the operator of the former refinery site at Marsden Point in northern New Zealand.

The capital injection will enable the company to recommission storage tanks capable of holding a combined 90 million liters of diesel, a move Jones said "will help ensure New Zealand is well-placed to weather the fuel supply issues."

Crucially, the timeline is tight — and intentional. Refurbishment work on the tanks is set to begin within days, with completion expected inside two months. Once operational, the expanded capacity will deliver roughly eight additional days of diesel supply, with the government making clear it intends to "take diesel as quickly as possible."

Jones framed the urgency in stark terms, calling diesel "the lifeblood of our economy" and stressing the need to be positioned to absorb extra volumes should fresh supply opportunities emerge on the global market.

The move comes against a backdrop of thinning fuel buffers. As of March 29, New Zealand held petrol, diesel, and jet fuel stocks equivalent to 58.7, 52.2, and 46.2 days of supply, respectively, according to official government figures — underlining the strategic pressure driving Thursday's announcement.

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