Channel Infrastructure is partnering with the New Zealand Government to rapidly expand diesel storage capacity at Marsden Point, aiming to strengthen fuel supply resilience within two months.
- Additional 93 million litres diesel storage to be added at Marsden Point
- Project accelerated to complete in approximately two months
- Collaboration between Channel Infrastructure and New Zealand Government
- Existing terminal operations to continue uninterrupted
- Expansion supports national energy security and supply chain resilience
Rapid Expansion to Bolster Fuel Security
Channel Infrastructure NZ Limited, New Zealand’s largest fuel import terminal operator, has announced a significant and expedited expansion of diesel storage capacity at its Marsden Point facility. In collaboration with the New Zealand Government, the company plans to add an additional 93 million litres of diesel storage within roughly two months, a move designed to enhance the country’s resilience against potential supply disruptions.
Rob Buchanan, Channel’s Chief Executive, praised the swift mobilisation of local teams and contractors in Northland, highlighting their adaptability and commitment to national energy security. This rapid response underscores the strategic importance of Marsden Point as a critical hub for fuel storage and distribution, particularly given its role in supplying Auckland and Northland.
Strategic Importance of Marsden Point
Currently, Channel Infrastructure manages over 290 million litres of contracted fuel storage at Marsden Point, handling around 40% of New Zealand’s transport fuel, including a dominant share of jet fuel. The new storage capacity will further solidify this position, providing a buffer that can mitigate the impact of supply chain interruptions and support the steady flow of essential fuels to the region.
The Marsden Point site benefits from deep-water harbour and jetty infrastructure, enabling efficient import and distribution. Fuel is transported via a 170-kilometre pipeline to Auckland or delivered by truck to Northland, serving major customers such as bp, Mobil, and Z Energy. This infrastructure underpins the reliability of New Zealand’s fuel supply chain.
Looking Ahead: Energy Transition and Growth
Beyond immediate storage expansion, Channel Infrastructure is positioning itself to play a pivotal role in New Zealand’s energy transition. The company’s Marsden Point Energy Precinct Concept envisions supporting the manufacture of lower-carbon fuels and exploring broader energy security opportunities. This expansion project not only addresses current supply resilience but also lays groundwork for future growth aligned with evolving energy demands.
While contractual details for the storage expansion are still being finalised, Channel has committed to commencing works immediately and delivering the project safely, on time, and on budget. Import terminal operations at Marsden Point will continue as usual throughout the construction phase, ensuring no disruption to fuel availability.
Bottom Line?
As Channel Infrastructure accelerates this critical storage expansion, the coming months will reveal how swiftly New Zealand can bolster its fuel security amid evolving energy challenges.
Questions in the middle?
- What are the final contractual terms and financial implications of the storage expansion?
- How will this increased capacity influence fuel pricing and supply stability in New Zealand?
- What specific renewable or lower-carbon fuel initiatives will the Marsden Point Energy Precinct pursue next?