New Zealand to expand jet fuel storage capacity: Channel
Sydney (8 June)
New Zealand infrastructure provider Channel Infrastructure plans to commission jet fuel storage tanks at its now-dormant Marsden Point refinery for Z Energy – an Ampol subsidiary – in July to boost domestic reserves.
Channel Infrastructure has also stood up 93 million litres of diesel storage capacity – equivalent to about nine days’ worth of reserves – for the New Zealand Government, the company told investors on 8 June.
It could make additional fuel storage available to importers and the Government. “Channel [Infrastructure] has a further 350 million litres of tank capacity remaining available for repurposing to support additional fuel security, if needed,” the company said.
New Zealand had 30 days’ worth of jet fuel in the country on 3 June, down from 31 days’ worth of jet fuel on 31 May and 33 days’ worth of jet fuel on 27 May, data from the Ministry of Business, Innovation, and Employment (MBIE) show.
Ships carrying 23 days’ worth of jet fuel are set to arrive in New Zealand over the three weeks from 3 June, MBIE data show.
New Zealand had 22 days’ worth of diesel in the country on 3 June, down from 24 days’ and 25 days’ worth of diesel on 31 May and 27 May, respectively. But Z Energy will store about nine days’ worth of imported diesel in Government-leased storage tanks at Marsden Point from late June.
“[The company] will procure, own and manage the volume of diesel under the [storage] agreement, but the Crown will control its release into the New Zealand market,” New Zealand Finance Minister Nicola Willis said on 28 April.
If the New Zealand Government decides to release fuel under the deal, it may need to cover the difference between Z Energy’s purchase and sales costs, according to Willis.
By Avinash Govind