New Zealand extends strategic diesel reserve agreement

The New Zealand Government has extended its agreement with Z Energy to maintain a 550,000-barrel strategic diesel reserve at Marsden Point until August 1, 2027. The reserve contains approximately 90 million litres of diesel, which provides roughly nine days of typical national consumption.

Finance Minister Nicola Willis stated that the extension aims to ensure fuel resilience amid volatility in international markets and ongoing monitoring of conflicts in the Middle East. While Z Energy will continue to own and manage the diesel, the Crown retains control over when the fuel is released into the domestic market.

Associate Energy Minister Shane Jones emphasized that diesel is critical to the national economy, supporting sectors such as agriculture and transport. The storage tanks at Marsden Point were previously refurbished using $21.6 million from the Regional Infrastructure Fund. If the reserve is not utilized before the contract expires, the diesel will be progressively moved into Z Energy’s commercial stocks through November.