Source: New Zealand Government
Marsden Point could become the heart of a bold vision to boost New Zealand’s fuel and energy security, and an attractive option for overseas investors seeking to be part of our economic growth story, Resources, Regional Development and Associate Energy Minister Shane Jones says.
“New Zealand is a small and remote nation. Our reliance on petrol, diesel and jet fuel being imported from overseas following the shutdown of the Marsden Point refinery carries risks. Global and domestic supply chain disruptions, price shocks and ageing infrastructure could cost the New Zealand economy billions of dollars,” Mr Jones says.
“Cabinet will consider a range of options to ensure we are better protected against these risks. Options could include creating energy precincts and special economic zones (SEZs), which are widely used overseas.
“Channel Infrastructure NZ, formerly Refining NZ, is already working to turn the Marsden Point refinery site into an energy precinct. 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, which are expected to be considered by Cabinet in the first half of this year, could include business-friendly regulations, infrastructure and facilities, investment support, and customs and trade facilitation.
SEZs would not be restricted to energy sites but could apply to any strategically important areas of the country where infrastructure, ease of doing business and investment are critical to the economic interests of New Zealand.
A Fuel Security Study released by Minister Jones today details the risks of an insecure fuel supply and the negative impacts disruptions could have on Kiwis and the economy. Also detailed in the report are possible actions that could be taken to mitigate the risks and the impacts. A separate report released today details an investigation into reopening the Marsden Point refinery, which was agreed in coalition negotiations between New Zealand First and the National Party
“The Government will have to carefully weigh up the costs and benefits of the actions suggested in the fuel study. These reports show there are going to have to be trade-offs if New Zealand is to have secure fuel supply. 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” Mr Jones says.