Channel Infrastructure NZ (ASX:CHI) has finalised a deal with the government to provide 93 million litres of additional diesel storage at the Marsden Point Energy Precinct.
The capacity—roughly equivalent to nine days of national diesel demand—will be maintained through Dec. 31, 2027.
To meet the operational target of May 31, work is already underway on an accelerated schedule, with crews and contractors on-site seven days a week.
The upgrade involves a suite of technical enhancements, including tank cleaning, the construction of dedicated linework, and the installation of advanced pumping and instrumentation systems.
Channel Infrastructure anticipates that this agreement will generate approximately $1.2 million in monthly incremental revenue once the facility becomes available.
The project’s costs are being managed within the company's existing debt facility, as the required works are less intensive than a full multi-year tank refurbishment.
CEO Rob Buchanan emphasised the precinct’s critical role in national resilience, noting that the collaboration with Northland contractor partners like Culham Engineering and United Civil has been essential to meeting the compressed timeframe.
Buchanan lauded the government's "decisive action" to secure fuel supplies, framing the project as a vital safeguard for the New Zealand economy.