The Government will put up to $21.6 million toward recommissioning diesel storage at Marsden Point, aiming to add 90 million litres of capacity within two months as ministers highlight supply risks from the Middle East conflict.

The funding, approved through the Regional Infrastructure Fund, will go to Channel Infrastructure, which owns the former refinery site and now operates it as an import terminal. The company has told ministers it can bring mothballed tanks back into service on a two‑month timeline, with work expected to begin within days.

Minister Shane Jones said the move is intended to ensure the country can hold additional diesel if extra cargoes become available. “While we are acutely aware of the importance of petrol and jet fuel, it is diesel that is the lifeblood of our economy,” he said, adding that current diesel supply is considered secure until the end of May.

The refurbished tanks would hold roughly eight days’ diesel supply. The Government says it will closely monitor progress to have the storage ready to receive product as quickly as possible.

The RIF money comes from funds previously tagged to projects approved in principle but not expected to proceed. The announcement did not include details on the commercial terms of the support, ownership of any stored fuel, or how the capacity would be allocated if supply tightens.

Marsden Point ceased refining and shifted to an import‑only model under Channel Infrastructure, leaving a significant volume of storage capacity idle on site. The Government says bringing some of that capacity back is a practical step to lift fuel resilience while global markets remain unsettled.