The Government has extended an agreement for a 550,000-barrel strategic diesel reserve until August 2027 in a bid to maintain New Zealand’s fuel resilience.
Finance Minister, Nicola Willis said maintaining New Zealand’s national fuel security, particularly through a period of global uncertainty, remained a top priority for the Government.
“That’s why we’re pleased to announce this extension to our existing deal with Z Energy for the diesel reserve at Marsden Point,” Nicola Willis says.
“We explored all options available to us and considered advice from officials before making this decision. It offers continued fuel resilience and serves the best interests of New Zealanders, especially in light of the current volatility in the international markets.”
Associate Energy Minister, Shane Jones says fuel supplies remain consistent but the extension to the agreement ensures domestic fuel resilience and protects against potential disruption to diesel supply.
“Diesel remains critical to New Zealand’s economy, from farms growing our food to trucks moving goods around our country. Our strategic diesel reserve provides confidence that we can keep key industries and services moving in the face of a threat to our fuel security,” Mr Jones says.
Minister Willis said the Government was continuing to monitor the impacts of the Middle East conflict closely and has a plan in place to respond appropriately should the global situation change.
“This year, we have shown how seriously we take New Zealand’s energy resilience and have taken steps in several policy areas to shore up our fuel supplies, working closely with the fuel industry throughout,” she said.
The diesel will continue to be stored in tanks at Marsden Point, refurbished with $21.6 million from the Regional Infrastructure Fund. The storage allows for around 90 million litres of fuel, equivalent to roughly nine days of typical national consumption.
