Marsden Point Tanks Strengthen New Zealand’s Diesel Reserve

The Government approved up to $21.6 million from the Regional Infrastructure Fund just over three months ago to refurbish enough storage capacity for an additional 93 million litres of diesel.

New Zealand has taken another step towards improving its fuel security with two refurbished storage tanks at Marsden Point now officially in service. The upgraded facility will hold the country's strategic diesel reserve, giving the Government greater ability to respond if global fuel supplies are disrupted in the future.

Finance Minister Nicola Willis and Associate Energy Minister Shane Jones joined Prime Minister Christopher Luxon and Channel Infrastructure representatives to mark the completion and recommissioning of the upgraded tanks at Marsden Point in Northland.

The Government approved up to $21.6 million from the Regional Infrastructure Fund just over three months ago to refurbish enough storage capacity for an additional 93 million litres of diesel. Channel Infrastructure completed the work ahead of schedule, making the tanks ready in early June to receive the country's new diesel reserve.

The investment followed growing concerns over international fuel supplies as conflict in the Middle East created uncertainty across global energy markets. Although conditions have since improved, the Government says recent events highlighted the importance of ensuring New Zealand has enough fuel available if overseas supply chains face future disruptions.

Nicola Willis said diesel remains one of the country's most important fuels because it keeps freight moving, supports farming and construction, and powers many essential services relied on by businesses and households every day.

Strategic reserve to improve national resilience

Following a competitive procurement process, Z Energy was selected to supply and manage the strategic diesel reserve, which will hold 90 million litres of fuel. Under the agreement, Z Energy owns and manages the reserve while the Crown retains the authority to release the fuel into the market during an emergency or major supply disruption. The diesel held in reserve will sit outside the company's normal minimum stockholding requirements, ensuring it remains available solely as a strategic national safeguard.

The first shipment of diesel has already arrived at the Marsden Point facility, with a second shipment expected later this month to complete the reserve. Shane Jones said the Government moved quickly to secure both additional fuel supplies and the storage needed to protect New Zealand during a period of heightened international uncertainty. He praised Channel Infrastructure for delivering the upgraded tanks within the ambitious timeframe agreed with the Government.

Fuel monitoring returns to normal schedule

With international fuel markets becoming more stable, the Government says New Zealand's fuel monitoring arrangements will now return to their regular reporting timetable. The Ministry of Business, Innovation and Employment (MBIE) will once again publish national fuel stock updates every Wednesday at 1 pm, providing regular information on the country's fuel supply levels.

Government ministers say the new strategic reserve strengthens New Zealand's preparedness for future disruptions while giving greater confidence that essential industries, transport services, and communities will continue to have access to diesel if international supply chains come under pressure again.