Channel Infrastructure, the company behind New Zealand’s largest fuel import terminal, is setting out an ambitious plan to transform the former Marsden Point Oil Refinery into a multi-faceted energy precinct. The proposed redevelopment aims to bolster the country’s energy resilience, support decarbonisation efforts, and unlock economic opportunities for Northland.
The vision, backed by the New Zealand government, could see the site repurposed to accommodate new energy projects, including biofuels manufacturing, expanded fuel storage, and other alternative energy solutions. With 120 hectares of underutilised land and critical infrastructure still in place, the company sees an opportunity to play a key role in the nation’s energy transition.
Government Support and the Special Economic Zone Proposal
The initiative has received strong backing from Resources Minister Shane Jones, who has described Channel Infrastructure’s plans as “exciting.” The government is now considering designating Marsden Point as a special economic zone, a move that could introduce business-friendly regulations, trade facilitation measures, and investment incentives to accelerate development.
“All of the potential options noted by the Minister as forming part of a potential Special Economic Zone would help us to deliver our vision for Marsden Point as an Energy Precinct, grow our operations, and create new jobs in Northland,” said Channel Infrastructure Chair James Miller.
The company’s Chief Executive, Rob Buchanan, echoed this sentiment, emphasising that government endorsement is crucial for attracting large-scale international partners. He pointed to a proposed biofuels project involving Japanese renewable energy firm Fountas Renova and global infrastructure services company Kent as an example of the types of investments that could be secured with strong policy support.
Economic Impact
The transformation of Marsden Point into an energy precinct is expected to have a significant economic impact. Research by PwC suggests that the project could contribute $3.3 billion to GDP over a 10-15-year construction period and create around 20,000 full-time equivalent (FTE) jobs during that time. Once fully operational, the precinct could generate $290 million in GDP annually and support 1,150 long-term FTE jobs.
“For Northland, additional projects of this scale that would see manufacturing restored at Marsden Point could also bring important investment, with the retention of a skilled contractor base supporting economic growth in Northland,” said Miller.
Beyond direct employment, the project is expected to provide a boost to industries, including construction, logistics, and energy, while also strengthening infrastructure and business opportunities in the region.
Fuel Demand and the Energy Transition
A key aspect of Channel Infrastructure’s strategy is ensuring continued fuel security for New Zealand while facilitating the country’s transition to lower-carbon energy sources. According to a fuel demand outlook by Envisory, an additional 2.5 billion litres of fuel is projected to flow through Marsden Point’s infrastructure over the next 26 years, equating to 140 million litres annually over the next decade.
This aligns with Channel’s plan to diversify its operations and reduce reliance on traditional fuel markets. The company is positioning itself as a crucial player in fuel storage expansion, biofuel manufacturing, and alternative energy solutions such as hydrogen and renewables.
“The Fuel Security Study has noted that re-establishing the Marsden Point Oil Refinery or developing a new oil refinery for indigenous crude would be inefficient due to either high costs and/or limited effectiveness,” Channel Infrastructure said in a press release. Instead, Channel sees expanding fuel storage capacity as one of the most cost-effective strategies for strengthening national fuel resilience.
A Future-Focused Strategy
While Channel Infrastructure has already invested in projects such as New Zealand’s largest jet fuel storage tank, the company’s broader strategy focuses on long-term sustainability and diversification. Buchanan has emphasised that Channel’s approach is about unlocking value from existing infrastructure and attracting new investment rather than relying solely on traditional fuel markets.
“These projects take quite a long time to bring to gestation, but to show you that we’re people of action, last year we announced $60 million worth of new growth projects in what was quite obviously a difficult economic environment,” Buchanan told Mike Hosking Breakfast.
The company is also exploring further import terminal infrastructure, which would strengthen New Zealand’s ability to store and distribute fuel efficiently. With proximity to Auckland and a well-established pipeline network, Marsden Point is a strategic location for fuel security and renewable energy development.
Looking Ahead
The transformation of Marsden Point into an energy precinct represents a blueprint for future energy infrastructure projects in New Zealand. With strong government support, significant economic potential, and a focus on sustainability and energy resilience, the project is being closely watched as it moves forward.
As Buchanan and his team continue discussions with investors and policymakers, the next steps will involve further clarification of regulatory frameworks, finalising investment partnerships, and detailed project planning.