Jones applauded the round-the-clock refurbishment by Northland’s qualified contractors and a crew from Taranaki, who completed the refurbishment of a 93-million-litre tank and a smaller auxiliary one in just eight weeks.
While the minister expected to be celebrating that preparedness, he said he was instead confronted with what he claimed were unnecessary regulatory demands.
He said WorkSafe regulators required existing earth bunds – structures designed to contain spills – to be replaced with concrete and plastic materials, despite the current infrastructure operating safely for decades.
“There is an expectation that millions of dollars will be spent replacing the bunds,” Jones said.
He believed the requirements were unnecessary and risked reducing fuel storage capacity in New Zealand.
Jones said the existing earth bunds had never failed and could manage any spill, arguing there was no need to “over-capitalise” the site with costly upgrades.
“In Australia, if you have existing assets, it is unnecessary to overcapitalise with scores of millions of dollars worth of concrete expenditure … you can rely upon historic[al] earth-based bunds.
“This is, in my view, gross overkill … This is why the country’s productivity is compromised — the socks-and-sandal brigade sitting in windowless rooms in Wellington.”
Jones said he “couldn’t be bothered arguing” with the regulator and would instead “deal with them via the upcoming election”.
WorkSafe New Zealand said it was working with Channel Infrastructure to ensure the work could proceed safely.
Requirements for diesel storage are set under the Health and Safety at Work (Hazardous Substances) Regulations 2017 and are based on international best practice, WorkSafe said.
Channel Infrastructure has a WorkSafe-approved compliance plan and is progressing longer-term bund upgrades separate from the immediate tank recommissioning.
WorkSafe said it does not assess proposals based on commercial impacts such as fuel storage capacity and does not estimate project costs.
Those are matters for Channel Infrastructure and any regulatory changes would be a matter for Parliament, it said.
A fragile ceasefire between the United States and Iran has allowed some movement through the Strait of Hormuz in recent weeks, but the situation remains volatile, with any renewed disruption likely to affect countries like New Zealand that rely entirely on imported refined fuel.
Energy Minister Shane Jones, pictured in April 2026 inside a tank at Marsden Point being converted for fuel storage. Photo / Denise Piper
Jones said supply remained available, but price pressure was already being felt.
“Every bit of advice we’ve received is that supply remains intact but price is spiking.”
Jones said the raw crude oil feeding refineries in Southeast Asia – where New Zealand sources much of its fuel – was “really tight”, meaning local consumers were likely to feel the effects.
“Because we’re at the end of the railway track, price is going to be a continual bane in our commercial lives.”
Despite market uncertainty, Jones said New Zealand was still regarded by suppliers as a reliable customer.
“New Zealand is seen as a clean pair of hands – we pay our bills, we’re a modern OECD nation – so we can still access supply, but we pay for it.”
Under the current arrangement, fuel company Z Energy is tasked with procuring, owning and managing the diesel, while Channel Infrastructure provides the storage.
The Government retains control over when the fuel is released, particularly given diesel’s role in freight, agriculture and emergency services.
Jones said supply volatility had also prompted fresh consideration of whether fuel importers should take more responsibility for maintaining domestic stocks.
Channel Infrastructure has been approached for comment.
Sarah Curtis is a news reporter for the Northern Advocate, focusing on a wide range of issues. She has nearly 20 years’ experience in journalism, most of which she spent reporting on the courts in Gisborne and the East Coast.