Study Launched to Enhance Fuel Security, Reopen Marsden Point Refinery Review

Associate Energy Minister Shane Jones announced the study, emphasizing the government's commitment to enhancing national resilience and ensuring a reliable fuel supply.

The Coalition Government is initiating a comprehensive study on New Zealand's fuel security, with a focus on evaluating the potential reopening of the Marsden Point refinery. Associate Energy Minister Shane Jones announced the study, emphasizing the government's commitment to enhancing national resilience and ensuring a reliable fuel supply.

“New Zealand’s resilience and self-sufficiency are top priorities for this government,” said Mr. Jones. “Since the Marsden Point refinery was mothballed by the previous administration, we have become entirely dependent on fuel imports, making us vulnerable to international supply chain disruptions.”

Fuel is essential for maintaining economic activity and community mobility, and the study aims to address potential vulnerabilities and develop strategies to mitigate risks from both domestic and global sources.

The Ministry of Business, Innovation and Employment (MBIE) has selected Envisory, supported by Castalia, to conduct the study. The assessment will include forecasts of fuel demand, stakeholder consultations across the supply chain, a review of the Marsden Point refinery’s potential reopening, and an analysis of possible supply chain disruptions.

Envisory was chosen for its deep understanding of New Zealand's fuel industry and its proven expertise in fuel security matters. The study will offer insights into the impact of prolonged fuel shortages on domestic distribution and will specifically evaluate the strategic importance of Marsden Point in bolstering fuel resilience.

The findings will be pivotal in shaping a comprehensive fuel security plan. An interim report on the feasibility of reopening Marsden Point is expected by the end of 2024.

In addition to the study, the Government is advancing other initiatives to strengthen fuel resilience, including updates to the minimum fuel stockholding obligations, exploring ways to enhance domestic diesel resilience, and collaborating with industry stakeholders to improve jet fuel supply at Auckland Airport.