The New Zealand government has extended its agreement for a 550,000-barrel strategic diesel reserve until August 2027, ensuring continued fuel resilience amid global uncertainty. Finance Minister Nicola Willis emphasized the importance of maintaining national fuel security, stating that the decision to extend the deal with Z Energy was made after exploring all available options and consulting officials.
The diesel reserve, stored in refurbished tanks at Marsden Point, can hold around 90 million litres of fuel, equivalent to roughly nine days of typical national consumption. The refurbishment was funded with $21.6 million from the Regional Infrastructure Fund. Associate Energy Minister Shane Jones highlighted the critical role of diesel in New Zealand's economy, particularly for agriculture and transportation.
Minister Willis noted that the government is closely monitoring the Middle East conflict and has a plan in place to respond if the global situation changes. She also mentioned that the government has taken steps in several policy areas to strengthen fuel supplies, working closely with the fuel industry.