New Zealand partners with Z Energy to buy diesel
- Sydney (28 April)
Fuel distributor Z Energy – a subsidiary of Ampol – will store 90 million litres of diesel at the now-dormant Marsden Point refinery on behalf of the New Zealand Government to boost the country’s fuel reserves.
“Z Energy will procure, own and manage the volume of diesel under the agreement, but the Crown will control its release into the New Zealand market,” New Zealand Finance Minister Nicola Willis said. The company plans to deliver diesel to Marsden Point in late June or early July, Willis added.
If the New Zealand Government decides to release fuel under the deal, which has not been finalised, it may need to cover the difference between Z Energy’s purchase and sales costs, according to Willis. The final cost of the deal will be based on market prices when the contract takes effect, the Government said.
On 20 April, the Government agreed to pay infrastructure operator Channel Infrastructure NZ$1.2 million per month to store nine days of diesel reserves at Marsden Point from 31 May 2026 until the end of 2027.
New Zealand had 36 days’ worth of petrol reserves, 22 days’ worth of diesel reserves, and 25 days’ worth of jet fuel reserves in the country on 22 April, data from the Ministry of Business, Innovation, and Employment (MBIE) show.
Refiners slowed their planned petrol, diesel, and jet fuel deliveries to New Zealand between 19 April and 22 April, MBIE’s data show. But fuel importers report no shipment issues and remain confident about planned fuel orders into June, Prime Minister Chris Luxon said today.
New Zealand’s jet fuel reserves fell from 26 days’ worth of fuel to 25 days’ worth of fuel between 19 April and 22 April. But, at this point, there is no risk to the country’s jet fuel supply, Luxon said. The New Zealand Government will take advice on whether it should buy additional supplies of jet fuel, though the country has limited jet fuel storage capacity, Resources Minister Shane Jones said today.
Z Energy’s deal with the New Zealand Government comes a day after the Singapore Economic Development Board revealed that Singaporean refiners - who supplied 32% of New Zealand’s fuel imports in 2024 - cut petroleum production by 20% on the year in March.
By Avinash Govind