Channel Infrastructure Unveils 120 Million Litres of Advanced Fuel Storage at Marsden Point

Major Expansion in Fuel Storage Capacity at Marsden Point

Channel Infrastructure NZ Limited has officially commissioned over 120 million litres of new fuel storage at its Marsden Point Energy Precinct. This development comprises 93 million litres dedicated to Government Diesel storage and 30 million litres allocated for jet fuel storage serving Z Energy. The company highlighted the strategic role this expansion plays in enhancing the resilience of New Zealand's fuel supply chain.

The new storage infrastructure was unveiled during a ceremony attended by prominent officials, including Prime Minister Chris Luxon. His presence underlines the critical national importance of this infrastructure upgrade, expected to strengthen the country’s energy security.

Prime Minister Chris Luxon Highlights Project’s National Significance

The opening event featured Prime Minister Chris Luxon alongside Hon Nicola Willis and Hon Shane Jones. A key moment was the official activation of the largest tank, an 80 million litre diesel tank. This high-profile attendance reflects the project's significance to New Zealand’s energy infrastructure and its potential economic impact.

Rob Buchanan, Chief Executive of Channel Infrastructure, emphasized the collaborative nature of the project, which was completed within an impressive timeframe. The engagement of local contractors and the swift delivery were notable achievements for the company.

Swift Project Delivery Despite Economic Challenges

Channel Infrastructure demonstrated exceptional operational efficiency by completing the project in just nine weeks amid challenging economic conditions. Remarkably, the project had no physical presence three weeks before commencement and was delivered safely and on schedule.

This rapid execution aligns with Channel’s broader strategy to invest in infrastructure that secures fuel supply while fostering regional growth and employment opportunities.

Future Growth Prospects at Marsden Point

Following the completion of the new tanks, Channel Infrastructure now operates over 400 million litres of tank capacity. Additionally, the company holds 350 million litres of storage capacity available for future repurposing and 45 hectares of consented freehold land for potential greenfield projects. These assets position Channel as a pivotal contributor to New Zealand’s energy transition.

The Marsden Point Energy Precinct development is projected to generate substantial employment, with up to 20,000 jobs expected during the construction phase. This ambitious initiative underscores Channel’s commitment to supporting strategic industries and enhancing energy security in New Zealand.

Channel Infrastructure’s Integral Role in New Zealand’s Fuel Supply Chain

Channel Infrastructure plays a crucial role in New Zealand’s fuel supply, storing and distributing 40% of the nation’s transport fuel and 80% of its jet fuel. The Marsden Point facility serves as a vital hub for fuel importation, storage, and distribution, leveraging its deep-water harbour and jetty infrastructure.

Fuel is efficiently distributed via a 170-kilometre pipeline to Auckland or transported by truck to Northland, ensuring low-emission and reliable delivery. Channel’s strategic location and infrastructure capabilities are essential to maintaining the resilience of New Zealand’s fuel supply chain.

Strategic Vision Supporting Energy Transition

Channel Infrastructure’s growth plans include bolstering New Zealand’s energy transition through expanded fuel storage and further development of the Marsden Point Energy Precinct. The company is actively exploring opportunities to support the production of lower-carbon future fuels and enhance national energy security.

These initiatives align with Channel’s vision to maximize the strategic value of its assets and infrastructure, positioning the company as a leader in the shift toward renewable energy sources.

Significant Investment in Infrastructure and Regional Development

Channel Infrastructure has invested over $165 million in new storage and infrastructure projects at Marsden Point. This investment not only strengthens operational capabilities but also contributes to the economic growth of the Northland region.

The company’s focus on community engagement and collaboration with local contractors highlights its commitment to sustainable development and positive social impact.

Diversified Operations Enhance Business Resilience

Beyond fuel storage and distribution, Channel Infrastructure holds a 25% stake in the Somerton jet fuel pipeline to Melbourne Airport. Its wholly-owned subsidiary, Independent Petroleum Laboratory Limited, offers fuel quality testing services throughout New Zealand.

These diversified business operations bolster Channel’s resilience and provide additional revenue streams, supporting its long-term growth objectives.