Consultation To Build On New Zealand's Strong Fuel Security Welcome
Energy Resources Aotearoa Chief Executive John Carnegie says the proposed plan is a constructive opportunity to build on New Zealand's already high-performing fuel security settings.
"New Zealand has a robust, well-functioning fuel supply system. Our current system, based on importing refined fuels, rather than crude, gives us more flexibility and resilience than when we imported crude into Marden Point, a single point of failure."
Carnegie says the proposed Fuel Security Plan announced today is about building towards a longer-term strategic direction for New Zealand's fuel security.
"The risks we face today are not the same as five years ago. The geopolitical landscape is shifting, and our security planning must change with it.
It's critical that the Government balances our high-functioning fuel imports system with any domestic production. We will seek to ensure the final plan does this in a way that minimises costs for consumers."
Fuel resilience must continue to be balanced with affordability and practical implementation, Carnegie says.
"It's important to be clear-eyed: New Zealand will always rely on imported fuels. Domestic alternatives like biofuels will only ever supplement, not replace, imported fuels.
We have to weigh the cost of resilience. Emerging technologies often come at a premium, and we need to think critically about how much we're willing to pay for the insurance for domestic production"
Carnegie says the best insurance policy remains New Zealand's diversified network of experienced fuel suppliers.
"This consultation is an opportunity to make innovative, cost-effective improvements to an already strong system.
We look forward to engaging with the Government to find the lowest-cost, most effective options to build on our current level of resilience, without duplicating effort or adding unnecessary cost."
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