Marsden Point Diesel Storage Upgrade Ready for National Reserve

Finance Minister Nicola Willis said the project was delivered within a tight timeframe and required the efforts of many workers and specialists to prepare the facilities for the arrival of the fuel reserves.

New Zealand's fuel security has received a boost with the completion of work to restore an additional 93 million litres of diesel storage capacity at Marsden Point in Northland. The project, carried out by Channel Infrastructure NZ, was completed in time to receive diesel reserves purchased by the Government. The upgraded storage tanks will play a key role in strengthening the country's ability to respond to potential fuel supply disruptions.

Finance Minister Nicola Willis said the project was delivered within a tight timeframe and required the efforts of many workers and specialists to prepare the facilities for the arrival of the fuel reserves. The first shipment of reserve diesel is already on its way to New Zealand and is expected to arrive at Marsden Point within the next two weeks. A second shipment is scheduled to arrive in July.

Reserve Designed to Strengthen Fuel Security

Once both shipments have arrived, the diesel reserve will represent roughly nine days of New Zealand's average diesel consumption. The reserve has been created as a safeguard against unexpected disruptions to fuel supplies. Diesel remains critical to many sectors of the economy, including transport, freight, agriculture, construction and emergency services.

Government ministers say the reserve is intended as a precautionary measure rather than a resource expected to be used regularly. The additional storage capacity ensures the fuel can be securely held within New Zealand and made available if supply chains face significant challenges. The arrival of the first shipment will mark an important milestone in the Government's efforts to improve national fuel resilience.

Regional Infrastructure Funding Supported the Project

The refurbishment of the Marsden Point storage tanks was funded through the Regional Infrastructure Fund, which contributed up to $21.6 million toward the work. Associate Energy Minister Shane Jones said global uncertainty continues to influence fuel markets, particularly while conflict in the Middle East remains unresolved. International tensions have contributed to concerns about fuel availability and price volatility in many parts of the world.

The Government believes maintaining a larger domestic diesel reserve provides an extra layer of protection for New Zealand during periods of instability in global energy markets. Officials say the focus remains on supporting a reliable fuel supply while helping reduce the impact of international events on businesses and households. The completion of the Marsden Point project means the country is now better positioned to manage short-term supply challenges should they arise.