THE NEW Zealand Government has put NZ$20+ million towards a boost in the nation’s diesel storage capacity but the maritime union is worried there are no longer local tankers to distribute the fuel.
The Government announced late last week it will enter into an agreement to support an additional 90 million litres of storage for diesel at Marsden Point in Northland to boost New Zealand’s fuel resilience as the Middle East conflict continues to impact global fuel supplies.
Regional Development and Associate Energy Minister Shane Jones said senior ministers had signed off the granting of on up to $21.6 million from the Regional Infrastructure Fund (RIF) to Channel Infrastructure NZ Ltd.
“This financial arrangement will allow Channel Infrastructure, which owns and operates the former refinery site at Marsden Point, to increase its diesel storage by recommissioning storage tanks with a combined 90 million-litre capacity,” Mr Jones said.
“Channel Infrastructure has assured the Government it can do this within two months. This is an ambitious but do-able project which will help ensure NZ is well-placed to weather the fuel supply issues New Zealand faces.
Storage of fuel supplies on a large scale is an issue, given much of what we had has been sitting idle at Marsden Point for a number of years,” he said.
“Work is expected to begin on the refurbishment of the tanks, which can hold about eight days’ supply, within days. The Government will be keeping a very close eye on progress to ensure it is ready to take diesel as quickly as possible.”
However, the New Zealand Merchant Service Guild (MSG), the Maritime Union of New Zealand (MUNZ) and the Aviation and Marine Engineers Association (AMEA), are calling on the Government to urgently secure New Zealand-crewed, New Zealand-flagged tankers to distribute the emergency fuel supplies.
“Having fuel in a tank at Marsden Point does nothing for a farmer in the South Island or an emergency services vehicle in a regional centre if we cannot move it where it is needed,” MSG VP Iain MacLeod said.
“Apart from the pipeline to Auckland and road distribution in the upper North Island, coastal shipping is the key domestic option for moving large fuel volumes between NZ ports.”
The unions say relying on low-cost international shipping operators during a global conflict is a high-risk strategy.
“At a time when shipping through the Strait of Hormuz is severely disrupted and global supply chains are under pressure, exposing NZ to further risk is a bad decision,” MUNZ national secretary Carl Findlay said. “We must rebuild a NZ maritime capability with vessels and crews that have a direct stake in our national resilience and security.”
The unions say the country became more exposed to fuel supply shocks after the Marsden Point refinery closed on 1 April 2022 and the NZ-flagged coastal tanker service, including vessels such as Matuku and Kokako, was lost.
“Our seafarers and engineers have an exemplary record of safety and reliability over decades of service,” says Mr Findlay. “Dedicated coastal tankers would provide both transport capacity and, when needed, mobile storage to help deliver fuel during local emergencies or international disruption.”
The unions are advocating for three immediate actions:
“The Government has found the money for storage. It must now find the will to rebuild the national maritime capability needed to move that fuel,” Mr Findlay said.