New Zealand eyes fuel storage options in Singapore and Malaysia
The government data shows fuel stocks have declined slightly, with less than 50 days of demand cover for petrol and diesel
Add BT as a preferred source
[WELLINGTON] New Zealand is looking at storing fuel in Malaysia and Singapore, a senior government minister said, as the impacts of the Iran war expose the risks from its limited domestic storage capacity.
“We don’t have surplus storage capacity in New Zealand,” Resources Minister Shane Jones said in an interview. “We do have options, and officials have explored the capacity for us to store fuel offshore. One of the options we have been advised about is Malaysia and Singapore.”
New Zealand lost a vast portion of its fuel storage capacity when its only refinery at Marsden Point north of Auckland closed in 2022. The area around Singapore and southern Malaysia is a major fuel refining and storage hub for Asia.
The outbreak of the Iran war and the closure of the Strait of Hormuz has pressured Asia as the region relies heavily on oil and gas from the Middle East. That has set off a scramble among nations to lock up supplies and seek assurances of steady supplies.
Last month, Prime Minister Christopher Luxon’s government contracted Channel Infrastructure NZ, which operates a fuel import terminal at the former refinery site, to recommission tanks for diesel storage. It also announced a deal last week with Z Energy – a unit of Australian fuel company Ampol – to secure an additional nine days of diesel supply. And it is assessing whether additional jet fuel supplies may be needed.
Jones said the idea of overseas storage was raised during talks with Z Energy as a way to create a further buffer. “Officials are pursuing those options as we speak,” he said.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The minister’s comments come two days after Singapore and New Zealand signed a deal to strengthen supply chain resilience and safeguard the flow of critical goods such as food and energy.
New Zealand government data on Wednesday showed fuel stocks have declined slightly, with less than 50 days of demand cover for petrol and diesel. New Zealand operates a four-phase fuel security system that can be activated if shortages loom. The country is currently at phase 1, which involves monitoring global developments.
Jones said he had not been advised that a shift to a higher phase was imminent.
SEE ALSO
Finance Minister Nicola Willis is expected to outline later this week what restrictions under phases three and four would mean in practice, following requests for greater clarity from the commercial sector, he said. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
