The Government's unprecedented contract with Z Energy for close to 90 million additional litres of diesel, equivalent to around nine days' supply, has been signed, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones say.
"Two weeks ago, we announced that the Government was in negotiations to firm up New Zealand's fuel resilience by securing additional supply through an agreement with Z Energy. We are pleased to announce this deal has now been finalised," Nicola Willis says.
"We have now placed an order for the fuel and expect the diesel will be in the refurbished tanks at Marsden Point as early as the end of June.
"Channel Infrastructure is working at pace to get the tanks ready to store the additional diesel, with the project due to be completed in the coming weeks.
"This is an ambitious project that will help strengthen New Zealand's fuel storage capacity, providing a valuable contribution to our short-term supply needs," Nicola Willis says
"This Government has shown that we take New Zealand's fuel security seriously and are willing to invest where it counts, with this agreement being the first of its kind here," Shane Jones says.
"We are continuing to monitor the impacts of the conflict in the Middle East very closely and will assess whether any further action is needed to secure additional fuel supplies.
"While our fuel system is built to manage uncertainty, and we have already taken significant steps to strengthen our fuel security, New Zealand is exposed to international supply chains. The conflict in the Middle East has reinforced the importance of building strategic resilience.
"Working with industry to establish reserve fuel supplies and increase our fuel storage capacity is exactly the kind of action we need to be taking right now to give ourselves the insurance we need."
