New Zealand signs agreement to support the additional storage of diesel

New Zealand's government announced on Thursday that it would spend NZ$21.6m ($12.42m) on the rapid expansion of diesel storage at Marsden Point, in the 'North Island'. The move is part of its efforts to protect the country from fuel shortages caused by the Iran War.

The funding will help facility owner Channel Infrastructure NZ increase its diesel storage by approximately 90 million litres, according to the statement. According to the company, Channel Infrastructure has 290 millions litres in use and another 350 million litres in tanks.

Regional Development and Associate Energy Minister Shane Jones stated in a press release that the additional diesel capacity would allow New Zealand to respond to opportunities to secure diesel above expected volumes.

Jones said: "While we're acutely aware of how important petrol and jet fuel are to our economy, diesel is the lifeblood."

Channel Infrastructure, the company that owns and runs the Marsden Point import terminal, has said it is working on bringing the storage online in two months.

Jones said New Zealand was able to secure its?diesel supplies until the end May. However, he warned that storage capacity would remain a problem because much of Marsden Point's?infrastructure had been idle for many years.

(source: Reuters)