New Zealand seeks offshore fuel storage due to limited capacity.
KUALA LUMPUR – New Zealand is considering storing fuel in Malaysia and Singapore, according to a senior government minister.
The move comes in response to the impact of the Iran conflict, which has highlighted the risks of limited domestic fuel storage capacity.
As reported by Bloomberg, Resources Minister Shane Jones said that New Zealand does not have surplus storage capacity at home.
As a result, the government has been exploring overseas storage options, with Malaysia and Singapore among the locations under consideration.
New Zealand’s fuel storage capacity declined significantly after the closure of its only oil refinery at Marsden Point near Auckland in 2022.
Meanwhile, Singapore and southern Malaysia are major hubs for fuel processing and storage in Asia.
Tensions stemming from the Iran war and the closure of the Strait of Hormuz have put pressure on Asia, which is heavily dependent on oil and gas supplies from the Middle East.
This has prompted many countries to secure their energy supplies.
The New Zealand government had previously appointed Channel Infrastructure NZ Ltd to reactivate storage tanks at the former refinery site to boost diesel reserves.
In addition, the government has reached an agreement with Z Energy, a subsidiary of Ampol Ltd, to ensure an additional nine days of diesel supply.
The government is also assessing further needs for jet fuel.
Jones said the idea of overseas storage has also been discussed with Z Energy as part of efforts to strengthen energy reserves. He emphasised that authorities are continuing to explore these options.
The statement comes two days after New Zealand and Singapore signed an agreement to strengthen supply chain resilience and ensure the smooth distribution of essential goods such as food and energy.
Government data shows that New Zealand’s fuel stocks have slightly declined, with reserves sufficient for less than 50 days of petrol and diesel demand.
The country operates a four-stage fuel security system and is currently at stage one, which focuses on monitoring global conditions.
Jones also said there are no indications that the country will move to a higher alert level in the near future.
Meanwhile, Finance Minister Nicola Willis is expected to provide further clarification on the impact of restrictions under stages three and four, following requests for clarity from the business sector. (DK/LM)
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