Marsden Point - where consent has been granted to build New Zealand's largest solar farm - is being considered as a central piece in potential plans to strengthen fuel security. Photo: Supplied / Meridian
The government is considering using energy precincts or special economic zones to strengthen the country's fuel and energy security.
Associate Energy Minister Shane Jones said Marsden Point could become the "heart of a bold vision".
The country's only oil refinery - Marsden Point - closed in 2022 - and the government says our reliance on imported fuels comes with financial risks.
Regional Development and Associate Energy Minister Shane Jones said 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."
A Fuel Security Study released by the minister on Tuesday outlines those risks, and the "negative impacts disruptions could have on Kiwis and the economy". The report outlines actions that could be taken to mitigate the risks and impacts.
"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."
Jones said Cabinet will consider options such as creating energy precinct and special economic zones (SEZs), "which are widely used overseas."
Special economic zones could be business-friendly regulations, infrastructure and facilities, investment support and customs and trade facilitation, which help to ensure New Zealand's fuel resilience.
Creating an SEZ would help ensure New Zealand's fuel and energy resilience, but could also provide "an attractive option for overseas investors," Jones said.
SEZs would not be restricted to energy sites, he said, 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."
Work is already underway to turn the Marsden Point refinery into an energy precinct, but the government is considering whether to reopen it.
Jones also announced on Tuesday the release of a report detailing an investigation into reopening the Marsden Point refinery, which was part of the National and NZ First coalition agreement.
Last week, the Prime Minister told Newstalk ZB the government was considering reopening it.
Jones said the reports will be helpful in forming the Fuel Security Plan being developed this year.
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