Iran war: Marsden Point owner can’t commit to Shane Jones’ ‘late May’ goal for extra fuel storage
Tuesday, 31 March 2026
The International Energy Agency has given its blessing for the Government to try to cash in paper options it has as part of a fuel security agreement, for physical fuel.
However, Channel Infrastructure — the owner of the former Marsden Point refinery — has cast doubt on the speed at which the plan to boost on-shore fuel reserves could be executed, saying it can’t commit to having additional tanks ready to hold the extra fuel by Associate Energy Minister Shane Jones’ late May target.
Finance Minister Nicola Willis said yesterday the Government had been approached by an unnamed commercial party that had offered to swap options or so-called “tickets” the Government has as part of its obligations with the International Energy Agency (IEA).
The trade would see the commercial party receive rights to “crude oil and other stocks” New Zealand has under a multilateral fuel security framework overseen by the IEA, for “usable fuel stock suitable for New Zealand’s needs”, she said.
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“If we were to secure additional fuel, we would also need somewhere to store it, either offshore or here,” she said.
“[Shane] Jones will therefore shortly bring a proposal to ministers to consider an option from Channel Infrastructure to allow for additional diesel storage at Marsden Point,” she said.
Jones indicated the goal would include securing an emergency supply of diesel equivalent to about “six or seven days” of national demand.
“Within a remarkably short period of time, probably toward the end of May, we will have funded and stood up additional storage,” he said.
A spokesperson for the Paris-based International Energy Agency told The Post overnight that the Government’s proposed use of its fuel tickets would be “fully in line with the IEA’s emergency system”.
Countries that participate in the fuel security scheme have usually exercised options in unison, rather than individually claiming their fuel entitlements under the scheme, as they did when the IEA co-ordinated the release of 400 million barrels of ‘emergency’ fuel from global stocks on March 11.
But the agency’s spokesperson said it had no concerns New Zealand’s possible option swap might compromise the orderly release of fuel stocks in future.
“The IEA secretariat is in regular contact with member countries as to the implementation of their contributions, including New Zealand, however these consultations are confidential,” its spokesperson said.
A spokesperson for Channel Infrastructure made clear yesterday evening that it could not commit to Jones’ target of having extra storage ready by late May, however.
The company had identified several empty tanks that had previously been used to store crude oil and that could be converted to hold a week’s worth of diesel, she said.
“We are talking several months for these tanks, but that would depend on when we were able to get started,” she said.
“We have noted the minister’s ‘May’ comments … but as I say, we can’t really commit beyond the ‘several months’ time frame at this stage.”