The New Zealand Government is considering using Marsden Point - on the country's North Island above Auckland - to boost the country's fuel and energy industry.
Marsden Point oil refinery once supplied 70% of New Zealand’s petroleum fuels, but was closed in 2022.
According to Resources, Regional Development and Associate Energy Minister Shane Jones, the creation of special economic zones (SEZs) in New Zealand, like the re-opening of Marsden Point, could help attract overseas investors and boost the local economy.
“Our reliance on petrol, diesel and jet fuel being imported from overseas following the shutdown of the Marsden Point refinery carries risks,” Jones said.
“Global and domestic supply chain disruptions, price shocks and ageing infrastructure could cost the New Zealand economy billions of dollars.
“Creating an SEZ there would not only help ensure New Zealand’s fuel and energy resilience, it could provide an attractive option for overseas investors.”
SEZs are expected to be considered by the cabinet in the first half of the year and would not be restricted to energy sites but also include important areas of the country where infrastructure, ease of doing business and investment are critical to the economic interest of New Zealand.
Jones released a Fuel Security Study outlining the risks and impacts insecure fuel supply could have on the country’s citizens and economy and how these could be mitigated. A separate report was also released outlining the details of the investigation to re-open the Marsden Point refinery.
Jones said the government are “carefully” weighing up the costs and benefits of the actions included in the reports.
“These reports show there are going to have to be trade-offs if New Zealand is to have secure fuel supply,” Jones said.
“The reports will also be incredibly helpful in forming our Fuel Security Plan, being developed this year.
“Channel Infrastructure released its energy precinct concept in October last year which contained a number of exciting options, including a biofuel refinery.
“If SEZs can help smooth the path for prospective investors and tenants, the Government is willing to consider them, along with other options”
