WELLINGTON, April 2 (Xinhua) -- The New Zealand government will fund an additional 90 million liters of diesel storage in the country's Northland to strengthen fuel resilience amid global supply uncertainty caused by the Middle East conflict, a senior official said Thursday.
Up to 21.6 million New Zealand dollars (about 12.4 million U.S. dollars) from the Regional Infrastructure Fund will go to Channel Infrastructure NZ Ltd, which owns and operates the former refinery site at Marsden Point in northern New Zealand, Regional Development and Associate Energy Minister Shane Jones said in a statement.
The funding, recently approved by senior ministers, will allow the company to recommission storage tanks with a combined capacity of 90 million liters of diesel, Jones said, adding it "will help ensure New Zealand is well-placed to weather the fuel supply issues."
Work on refurbishing the tanks will begin within days and could be completed within two months, providing about eight days of additional diesel supply, the statement said, noting that the government will ensure it is ready to "take diesel as quickly as possible."
Describing diesel as "the lifeblood of our economy," Jones said New Zealand needs to be ready to store extra volumes if new supply opportunities arise.
By March 29, New Zealand had a total stock of petrol, diesel and jet fuel for 58.7 days, 52.2 days and 46.2 days, respectively, according to government figures. ■
