Marsden Point set to become NZ's first ‘special economic zone’

Tuesday, 25 February 2025

The owner of Marsden Point, NZX-listed Channel Infrastructure, says it is excited by the Government’s proposal.

The Government is considering turning Marsden Point into a special economic zone where investors, including overseas investors, would receive special benefits.

The decision comes after the Government effectively abandoned the idea of reopening an oil refinery on the site.

The zone would be relatively free of planning regulations, and the benefits could include “business-friendly regulations, infrastructure and facilities, investment support, and customs and trade facilitation”.

Resources Minister Shane Jones first outlined the concept at an industry event a fortnight ago describing a “royal circle” around the site with its own bespoke planning powers where businesses could invest in energy projects and “not be stuck with Whangarei District Council” or the Northland Regional Council.

Other special economic zones could be set up elsewhere “in any strategically important areas of the country where infrastructure, ease of doing business and investment are critical” and would not necessary be limited to encouraging energy-related investments, he said.

Re-opening the Marsden Point oil refinery itself (pictured above), is effectively off the table.

NZ First’s coalition agreement with National committed the Government to investigating the reopening the Marsden Point oil refinery which closed with the loss of 240 jobs in 2022, as well as to commissioning a study into the country’s fuel security and establishing “a fuel security plan”.

But Jones conceded re-opening the refinery would be “stupendously expensive” and nowhere near the horizon given the Government’s fiscal challenges.

The Marsden Point facility is owned by NZX-listed Channel Infrastructure which continues to use it to distribute imported fuel and for other developments.

The company’s chairperson, James Miller, described the prospect of a special economic zone as exciting and “a resounding vote of confidence” in the future of the company.

“All of the potential options noted by the minister as forming part of a potential special economic zone would help us to deliver our vision for Marsden Point as an energy precinct, grow our operations, and create new jobs in Northland,” he said.