WELLINGTON, July 7 (Xinhua) -- New Zealand has activated a new strategic diesel reserve at the Marsden Point facility in the country's Northland, the government said on Tuesday while seeking to bolster fuel security amid ongoing global supply risks.
Two refurbished storage tanks are now operational, providing capacity for about 93 million liters of diesel. The project was completed just over three months after approval of up to 21.6 million NZ dollars (12.31 million U.S. dollars) from the Regional Infrastructure Fund, said a government statement.
"While tensions in the Middle East have eased somewhat, global supply chains remain vulnerable and it is important New Zealand is better prepared for future disruption," Finance Minister Nicola Willis told an event held to officially mark the completion and recommissioning of the tanks.
"Diesel is essential to keeping New Zealand moving," Willis said, noting its role in freight, agriculture and construction.
Fuel retailer Z Energy was selected through a competitive procurement process to supply and manage the roughly 90-million-liter reserve, the statement said, adding that while the company owns and manages the stock, the government retains authority to release it in the event of supply disruptions.
The first diesel shipment has arrived at the facility, with a second due later this month, the statement noted. ■