Source: New Zealand Government
A study of New Zealand’s fuel security, including investigating reopening the Marsden Point refinery, will soon get underway as the Coalition Government seeks to beef up the country’s resilience, Associate Energy Minister Shane Jones says.
“Ensuring New Zealand is a resilient and self-sufficient country is a priority for this government, and a secure and reliable fuel supply is critical to this.
“Since Marsden Point was mothballed by the previous government, we have relied on imports for all our liquid fuels, which leaves us completely vulnerable to international supply chain disruptions. Fuel is crucial for keeping our economy running and our communities moving.
“We need to protect ourselves from potential crises at home and overseas and to put measures in place to mitigate and manage adverse impacts.
“Through the study, we will have a clearer idea where we stand domestically and the resilience of the fuel supply chains into our country so we can make a robust plan to ensure a secure fuel supply,” Mr Jones says.
Following a procurement process, Ministry of Business, Innovation and Employment (MBIE) has appointed Envisory, with support from Castalia, to undertake the fuel security study.
The study will involve looking at New Zealand’s fuel demand forecast, engaging with stakeholders across the fuel supply chain, providing advice regarding reopening Marsden Point refinery, and mapping potential disruptions to the supply chain.
Envisory demonstrated a strong understanding of New Zealand’s fuel industry and supply chains, as well as expertise in delivering fuel security work here, according to MBIE.
“While the study will provide valuable insight in the impact of an extended fuel supply shortage and effects on domestic fuel distribution, it will specifically investigate the strategic importance of the infrastructure at Marsden Point and the role it could play in underpinning New Zealand’s fuel resilience,” Mr Jones says.
The study is a National-NZ First coalition priority, and its findings will support the development of a fuel security plan. An interim report investigating the reopening of Marsden Point refinery is due before the end of 2024.
The Government has other work underway to increase fuel resilience, including finalising changes to the minimum fuel stockholding obligations regime, exploring options for bolstering domestic diesel resilience, and working with industry on their plans to increase jet fuel resilience at Auckland Airport.
