CHI welcomes Government’s comments on Energy Precinct

Channel Infrastructure NZ Limited (Channel or Channel Infrastructure) (NZX: CHI), New Zealand’s largest fuel import terminal business, today welcomes the Government’s announcement regarding the Marsden Point Energy Precinct, and the important role we play in delivering strategic infrastructure for New Zealand.

Commenting on the announcement today, Channel Infrastructure Chair, James Miller said:
“Today, the Resources, Regional Development and Associate Energy Minister Shane Jones, has described Channel’s future plans as ‘exciting’, and described how Marsden Point could be at the heart of boosting New Zealand’s fuel and energy security. This is a resounding vote of confidence in the future of our Company, and we look forward to seeing the full potential of the Energy Precinct delivered over time.”

The Minister today also references the potential for a ‘Special Economic Zone’ at Marsden Point which the Government says could include business-friendly regulations, infrastructure and facilities, investment support, and customs and trade facilitation. “All of the potential options noted by the Minister as forming part of a potential Special Economic Zone would help us to deliver our vision for Marsden Point as an Energy Precinct, grow our operations, and create new jobs in Northland and we look forward to the Government announcing more detail about how a new Special Economic Zone might work in due course.” James Miller said.

Channel Infrastructure CEO Rob Buchanan added, “Channel’s Marsden Point Energy Precinct is a vision for our strategic site and the role it could play in enhancing national fuel and energy security while supporting thousands of jobs and billions of dollars of economic growth in Northland. Just one example of how we can achieve this, which the Minister references, is the potential biofuels project, announced last year.”

Research undertaken by PwC has found that development of Channel’s Marsden Point Energy Precinct projects could generate GDP of around $3.3 billion, and contribute around 20,000 FTE jobs, over the 10-15 year construction phase; once fully operational, the projects could generate around $290 million annually in GDP and contribute around 1,150 FTE jobs.

Channel also welcomes the release by the Government of its Fuel Security Study report. With the oil refinery having been fully decommissioned, Channel has been operating New Zealand’s largest fuels import terminal since 2022. The Fuel Security Study has noted that re-establishing the Marsden Point Oil Refinery or developing a new oil refinery for indigenous crude would be inefficient due to either high costs and/or limited effectiveness.

“The Fuel Security Study provides a range of potential options to mitigate risks to New Zealand’s fuel security, and concludes that, amongst other options, increased fuels storage is one of the most cost-effective strategies for enhancing fuel resilience in New Zealand. This is something Channel is strategically positioned to support with our large available tank capacity at Marsden Point and proximity and access to New Zealand’s largest fuel demand market of Auckland.” Rob Buchanan said.

Channel will present its FY24 financial results to the market this Thursday.

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Authorised by:

Chris Bougen
General Counsel and Company Secretary

Contact details

Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com

Announcement PDF