The New Zealand government will provide NZ$21.6 million ($12.4 million) to Channel Infrastructure to expand diesel storage capacity at Marsden Point by 90 million liters, or eight days' worth of supply, Associate Minister of Energy Shane Jones said Thursday.
"Channel Infrastructure has assured the Government it can do this within two months. This is an ambitious but do-able project which will help ensure New Zealand is well-placed to weather the fuel supply issues New Zealand faces," said Jones.
Channel Infrastructure is expected to start refurbishing existing tanks within days.
As of March 29, New Zealand holds 21.6 days of diesel in storage, with 8.4 days deliverable within two days and 22.2 days within three weeks, according to the Ministry of Business, Innovation & Employment.
The funding will come from the Regional Infrastructure Fund and from projects approved in principle but unlikely to proceed.
Marsden Point, the site of a former refinery converted into a fuel import and storage terminal in 2022, currently has over 290 million L of storage capacity.
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--Reporting by Kite Chong, kchong@opisnet.com; Editing by Lujia Wang, lwang@opisnet.com
(END) Dow Jones Newswires
04-02-26 0040ET
