On July 7 (Wellington time), according to Xinhua, the New Zealand Government officially put into operation a strategic diesel oil reserve at the Marsden Point facility, Northland, to strengthen its ability to respond to fuel supply risks in the context that the global supply chain still contains many instabilities.
According to government announcements, 2 fuel tanks have been renovated and put into use, providing a capacity of about 93 million liters of diesel oil.
The project was completed just over 3 months after being approved for a maximum support of 21.6 million New Zealand dollars (about 12.31 million USD) from the Regional Infrastructure Fund.
Speaking at the inauguration and commissioning ceremony of the system, New Zealand Finance Minister Nicola Willis said that although tensions in the Middle East have somewhat cooled down, the risk of disruption to the global fuel supply chain still exists.
Despite the somewhat eased situation in the Middle East, the global supply chain remains vulnerable. It is important that New Zealand prepare better for possible disruptions in the future," Ms. Willis emphasized.
According to her, diesel oil plays an essential role in the New Zealand economy as it is widely used in freight transportation, agriculture, construction and many other production sectors.
Diesel helps maintain New Zealand's operations," the Finance Minister affirmed.
The New Zealand government said that fuel retailer Z Energy has been selected through a competitive bidding process to supply and manage strategic diesel reserves, currently around 90 million liters.
Although Z Energy owns and manages this amount of fuel, the decision to use the reserves still belongs to the Government of New Zealand in case of supply disruptions or emergencies.
According to the announcement, the first batch of diesel oil has been transported to Marsden Point, while the next batch is expected to dock at the port at the end of this month to complete the reserves.
Putting strategic diesel oil depots into operation is seen as part of New Zealand's long-term plan to strengthen energy security, minimize the impact of geopolitical fluctuations and ensure fuel sources for the economy when the world market faces supply shocks.
