NEW ZEALAND: New Zealand is looking at storing fuel in other countries, including Singapore, with which it signed a landmark food and fuel pact earlier this week.
An AFP report quotes Resources Minister Shane Jones as saying on Friday (May 8) that the country is also considering Malaysia and South Korea for overseas fuel storage in the event that New Zealand creates a physical sovereign reserve.
In 2022, the country’s only oil refinery at Marsden Point shut down due to a commercial decision by its private owners, Channel Infrastructure (formerly Refining NZ), as it was no longer economically profitable.
Amid what Mr Jones called a “fuel quagmire” that New Zealand is now needing to find its way around, discussions have been held concerning global locations it could store fuel.
“We don’t have surplus storage capacity in New Zealand. We do have options, and officials have explored the capacity for us to store fuel offshore. One of the options we have been advised about is Malaysia and Singapore,” a Bloomberg report quoted him as saying.
The report cited government data from May 6 that showed a slight decline in the country’s fuel stock, with under 50 days of gasoline and diesel demand cover. Under New Zealand’s four-phase fuel security system, the country is in the first phase of monitoring developments around the world.
Last month, the country signed a letter of intent for the purchase of 90 million litres of diesel, which is equivalent to nine days of supply for the whole nation.
Mr Jones said that it has recently grown evident to the government that it does not have enough storage capacity to substantially increase its stocks
“Therefore, the officials are working and looking at options. If the New Zealand government is to increase the buffer, what is the quality of the option in the three countries where we draw our fuel from — Malaysia, Singapore, and Korea,” he added.
The country also has the possibility of buying fuel from other countries, such as Japan and the United States, as it manages the current “fuel quagmire.”
On Monday (May 4), New Zealand’s Prime Minister Christopher Luxon sounded exultant in a video he posted on social media after the landmark agreement with Singapore was signed. He filmed the clip in front of an oil refinery, saying that the fuel from the refinery would be going straight to New Zealand.
Essentials would flow between the two countries “even when the world gets disrupted.” He said that around one-third of New Zealand’s fuel is refined in Singapore, adding, “So what happens in Singapore affects our fuel supply at home. It’s this fuel that keeps trucks moving, farms running, and food on the table for everyone.” /TISG
This article (New Zealand considers storing fuel in Singapore, Malaysia) first appeared on The Independent Singapore News.
