Q1 2025 Operational Update

NZX RELEASE
15 April 2025

Q1 2025 Operational Update
Channel Infrastructure NZ Limited (NZX:CHI) has today released its operational update for the three months
ended 31 March 2025.

Strategic Highlights

• On 9 April 2025 the New Zealand Government announced an increase in the minimum stockholding
obligation for diesel importers (with more than 10% market share) from 21 days to 28 days
(equivalent to an additional ~70 million litres) which will take effect from 1 July 2028. Channel is well
positioned to support our customers to meet any requirements for additional stockholding they may
have, with ~350 million litres of tank capacity at Marsden Point that can be repurposed as it is
needed. Channel’s proximity and access to Auckland, New Zealand’s largest fuel demand market,
also facilitates efficient turnover of fuel stocks to uphold product quality.

• Channel has commenced front-end engineering and design for a potential diesel generation plant at
its Marsden Point site that could provide electricity peaking capacity to help smooth New Zealand’s
winter electricity peaks. The cost of the design work is being funded by two electricity market
participants and should be complete within the coming months. Should the project go ahead, the
proposed commercial model for the project would result in the Company receiving capacity
payments for making the plant available to potential customers.

• Following the conclusion of the Government’s Fuel Security Study, Channel welcomed the
Government’s announcement on 25 February regarding the role the Marsden Point Energy Precinct
could play in boosting New Zealand’s fuel and energy security including the potential for a ‘Special
Economic Zone’ at Marsden Point which could include business-friendly regulations, infrastructure
and facilities, investment support, and customs and trade facilitation.

Throughput

Following the commissioning of the Transmix project late last year approximately 50% of Channel’s revenue
is now fixed/capacity-based fees, with the remainder calculated in relation to fuel throughput:

• Combined fuel throughput for the quarter ended 31 March was 915 million litres. Jet throughput was
in line with Channel’s expectations and petrol and diesel throughput combined remain in line with the
Envisory fuel demand outlook
1
.

• 13 import shipments were received and discharged during the quarter reflecting an increase in larger
Long-Range vessels being received at Marsden Point reducing the overall number of ship
movements (Q1 2024: 17).

1
The Envisory outlook is annual for all fuel types, Channel uses 2024 historical data to inform FY25 seasonality.

• Jet throughput for Q1 25 remains stable relative to Q1 24, in line with Channel’s guidance for 2025,
reflecting Air New Zealand’s well-signalled aircraft availability issues this year.

• Diesel throughput was lower for Q1 25 relative to Q1 24 due to a scheduled diesel tank outage at the
Wiri (Auckland) end of the fuel pipeline. The fuels terminal at Wiri, which is owned by Channel’s
customers, is undergoing a significant program of works across 2025 which will see a series of
rolling planned tank outages to enable infrastructure upgrades.

• Petrol throughput was higher for Q1 25 relative to Q1 24, reflecting stockholding levels at Wiri.

A summary of quarterly throughput by fuel type since commencement of import terminal operations on 1
April 2022 is included as Appendix I.

Conversion and growth project update
Conversion spend is ~$187 million to 31 March 2025 (31 December 2024: $186 million) and remains within
budget. Bund upgrades for the conversion project will continue until 2027.
The private storage multi-year growth project was completed Q1 2025 and delivered safety, within budget
and to schedule. Capex of ~$50 million was spent to 31 March 2025 (31 September 2024: $49 million).
The Z Energy jet storage project, announced 23 August 2024, is more than 30% complete and remains on
schedule and within budget. The bitumen import terminal construction tender is well progressed and on
track to be awarded early May 2025.
Net borrowings increased to $305 million as at 31 March 2025 (31 December 2024: $296 million).

- ENDS -

387
280
254
381
261
273
JetDieselPetrol
Throughput Q1 2024 V Q1 2025
Million Litres
Q1 24Q1 25
921
915
Q1 24Q1 25
Throughput Q1 2024 V Q1 2025
Million Litres
JetDieselPetrol

Authorised by:
Chris Bougen
General Counsel and Company Secretary
Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com

About Channel Infrastructure NZ

Fuel is imported via our deep-water harbour and jetty infrastructure at Marsden Point and stored in more
than 290 million litres of contracted storage tanks on site. The fuel is then distributed via our 170-kilometre
pipeline to Auckland, or by our customers (bp, Mobil, and Z Energy) via truck into Northland. We underpin
the resilience of New Zealand’s fuel supply chain with our tank capacity, which enables increased storage of
fuel in New Zealand, and through efficient, low-emission distribution of the fuel into the Auckland market.
Given our proximity to Auckland, and critical role in the jet fuel supply chain, Channel is well positioned to
support the renewable fuel transition in New Zealand.
Our plan for growth includes supporting fuel resilience for New Zealand through additional fuel storage on
our site, unlocking the strategic value of the Marsden Point Energy Precinct Concept which reflects the
significant role Channel could play in supporting New Zealand’s energy transition – through potential
opportunities including supporting the manufacture of lower-carbon future fuels, as well as a range of
potential energy security opportunities, and exploring expansion beyond Marsden Point through the
acquisition of other terminals infrastructure in New Zealand.
Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum Laboratory Limited, provides fuel
quality testing services throughout New Zealand.
For more information on Channel Infrastructure, please visit: www.channelnz.com

Appendix I – Throughput (since 1 April 2022)
Throughput
by quarter
(million
litres)

2022


2023

2024 2025

Quarter 1



Jet

280 387 381

Diesel

282 280 261

Petrol

249 254 273

Total

811 921 915




Quarter 2



Jet 146 299 318

Diesel 275 274 267

Petrol 257 249 255

Total 679 821 840




Quarter 3



Jet 200 314 324

Diesel 264 261 251

Petrol 258 263 238

Total 721 838 813




Quarter 4



Jet 244 365 375

Diesel 275 283 289

Petrol 280 251 245

Total 799 900 909