The first shipment of New Zealand’s new government-controlled diesel reserve is on its way to Marsden Point, with officials saying the move will strengthen the country’s fuel security and resilience against potential supply disruptions.
Finance Minister Nicola Willis and Associate Energy Minister Shane Jones announced that the fuel was loaded on 31 May and is expected to arrive at Marsden Point in Northland between 16 and 18 June. A second shipment is scheduled to arrive in early July.
The two shipments will provide around 93 million litres of diesel, equivalent to approximately nine days of New Zealand’s typical diesel consumption.
At Marsden Point, Channel Infrastructure is refurbishing two former crude oil storage tanks to accommodate the reserve. The upgrade is being supported by up to $21.6 million from the Regional Infrastructure Fund, with the tanks expected to be ready when the first shipment arrives.
The diesel reserve will be held separately from fuel companies’ minimum stockholding requirements and will remain under government control.
Willis said diesel plays a vital role in the New Zealand economy, powering freight transport, agriculture, construction and essential services.
“Having additional diesel available in New Zealand provides greater resilience and gives New Zealanders confidence that we are better prepared for potential supply disruptions,” she said.
Jones said the Crown and Z Energy had agreed that the company would own and manage the reserve stocks on behalf of the Government, while ministers would decide when and how the fuel reserve is used.
The reserve forms part of the Government’s efforts to improve energy security following the closure of the Marsden Point oil refinery and growing concerns about the country’s reliance on imported fuel supplies.
Image credit: Joshua Horsch
Not for the peasants.