Resources, Regional Development and Associate Energy Minister, Shane Jones, has today unveiled his vision for Marsden Point to become the heart of New Zealand’s fuel and energy security future.
Minister Jones said Marsden Point was an attractive option for overseas investors seeking to be part of New Zealand’s economic growth story,
A Fuel Security Study released today by Mr Jones details the risks of an insecure fuel supply and the negative impacts disruptions could have on Kiwis and the economy. Also detailed in the report are possible actions that could be taken to mitigate the risks and the impacts.
A separate report also released today details an investigation into reopening the Marsden Point refinery, which was agreed in coalition negotiations between New Zealand First and the National Party.
“The Government will have to carefully weigh up the costs and benefits of the actions suggested in the fuel study. These reports show there are going to have to be trade-offs if New Zealand is to have secure fuel supply. The reports will also be incredibly helpful in forming our Fuel Security Plan, being developed this year,” said Mr Jones.
“New Zealand is a small and remote nation. Our reliance on petrol, diesel and jet fuel being imported from overseas following the shutdown of the Marsden Point refinery carries risks. Global and domestic supply chain disruptions, price shocks and ageing infrastructure could cost the New Zealand economy billions of dollars.”
“Cabinet will consider a range of options to ensure we are better protected against these risks.”
Options could include creating energy precincts and special economic zones (SEZs), which are widely used overseas, the Minister said.
“Channel Infrastructure NZ, formerly Refining NZ, is already working to turn the Marsden Point refinery site into an energy precinct. Creating an SEZ there would not only help ensure New Zealand’s fuel and energy resilience, it could provide an attractive option for overseas investors.”
SEZs, which are expected to be considered by Cabinet in the first half of this year, could include business-friendly regulations, infrastructure and facilities, investment support, and customs and trade facilitation, Mr Jones said.
He said SEZs would not be restricted to energy sites but could apply to any strategically important areas of the country where infrastructure, ease of doing business and investment are critical to the economic interests of New Zealand.
“Channel Infrastructure released its energy precinct concept in October last year which contained a number of exciting options, including a biofuel refinery. If SEZs can help smooth the path for prospective investors and tenants, the Government is willing to consider them, along with other options” Mr Jones says.
