Diesel reserve extended to maintain fuel security
The New Zealand Government extended a strategic diesel reserve agreement with Z Energy until August 2027 to safeguard fuel security amid global market volatility.
The Government has extended an agreement for a 550,000-barrel strategic diesel reserve at Marsden Point until August 2027, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones announced. The extension aims to maintain national fuel resilience during a period of global uncertainty, with officials assessing all available options before making the decision.
Nicola Willis stated that maintaining fuel security remains a top priority, highlighting the volatility in international markets as a key factor in the decision. The Government considered official advice before finalising the extension, which ensures continued diesel supply resilience for New Zealanders.
Shane Jones emphasised diesel’s critical role in the economy, from agriculture to transportation, and noted that the reserve provides confidence against potential supply disruptions. The extension protects key industries and services by securing domestic fuel resilience in the face of global threats.
The diesel will continue to be stored in refurbished tanks at Marsden Point, funded by a $21.6 million investment from the Regional Infrastructure Fund. Z Energy will retain ownership and management of the diesel volume, while the Crown controls its release into the market until the agreement expires on 1 August 2027.