New Zealand's largest fuel importer, Channel Infrastructure, is expanding its sights across the Tasman, targeting acquisitions in Australia's jet fuel and diesel markets following its recent listing on the ASX.
In November, Channel made its first foray outside New Zealand, acquiring a 25% stake in an ExxonMobil-operated jet fuel pipeline serving Melbourne Airport from infrastructure investor CVC DIF.
The company now aims to broaden its presence in aviation fuel, diesel, and petrol storage and import sectors, CEO Rob Buchanan said.
Buchanan highlighted Channel's operational expertise as a key differentiator from passive investors. "The relationships we’ve built with oil companies and customers in New Zealand are critical to unlocking growth opportunities in Australia," he said.
Formerly known as New Zealand Refining Co, Channel owns the country's largest fuel import terminal at Marsden Point, which handles roughly 80% of New Zealand's jet fuel and 40% of land transport fuels.
The terminal operates under long-term contracts with ExxonMobil, BP, and Ampol's Z Energy.
Alongside its Australian expansion, Channel is investing in domestic infrastructure, including a bitumen import terminal, biofuels projects with Qantas (ASX:QAN) and ANZ Bank, and a sustainable aviation fuel initiative with mining giant Fortescue (ASX:FMG).
Buchanan said Channel's dual listing strategy would help fund both acquisitions and organic growth while offering investors stable cash flows partially backed by fixed revenues.