Rob Buchanan: Channel Infrastructure CEO on potentially turning Marsden Point into a new energy precinct

The company behind Northland's Marsden Point Oil Refinery wants to turn it into a new energy precinct. 

The refinery closed in 2022 and is decommissioned, with Resources Minister Shane Jones now considering making the area a special economic zone, meaning different planning, investment, and even tax rules. 

Jones says transforming the asset to enable alternative fuel manufacturing like bio-fuel would help with energy security.

Channel Infrastructure Chief Executive Rob Buchanan told Mike Hosking they welcome the Government's approach. 

He says they're pleased the minister is willing to support the exciting project. 

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Episode Transcript

Speaker 1 (00:00):
The report on getting Marsden Point back up and running.
Is a refiner returned out to be the waste of time.
You thought it would give the bills billions and we
don't have it. But the idea now being float is
special economic zones, essentially an area with its own business
and trade laws, Channel Infrastructure cy Rob Buchanan's with us
on this, Rob, wanting to.

Speaker 2 (00:15):
You bonding, Mike.

Speaker 1 (00:17):
We could have told everybody, couldn't we that recharging the
refinery was going to cost a small fortune. We weren't
going to do it. Was this a complete waste of time.

Speaker 2 (00:25):
Look, we've been saying sometime that obviously, with the refinery
having been switched off in twenty twenty two and fully
decommissioned at the start of last year, that it would
cost billions of dollars to restart it. So yes, this
report that's come out today is just a reflection of
what we've been saying.

Speaker 1 (00:43):
And what's a special zone and how would it work?
And once you get one, why can't I have one?

Speaker 2 (00:49):
Well, look, let's separate two issues here. So last year
we released the market our plans for a energy precinct
at Marsden Point, which is a repairing of a lot
of the infrastructure that we have there that has capacity.
There's a significant number of projects that we're working on
for that energy precinct, and some work we've done by

(01:10):
PwC would suggest that that could generate GDP of around
three point three billion are fully realized with around twenty
thousand jobs over a fifteen year construction phase. So really
exciting project for US. And look, one we're really pleased
with the announcements made yesterday that the government's seen as
well and is looking to get behind us. I think

(01:31):
from our perspective, one of the benefits of effectively the
government's endorsement of what we're doing is we're working with
some fairly large international partners. One of our projects, which
is a bio fuels refinery project, we're working with Fontas Renova,
who's Japanese renewable energy company, Kent International Infrastructure Services Company,

(01:53):
and they like to know that they're working with parties
or companies that have the backing of the government in
what they're doing, So I think that endorsement's helpful for us.

Speaker 1 (02:04):
Good if you built it, will they come because that's
resource rich what you're talking about, isn't it.

Speaker 2 (02:10):
Yeah, Well, look, I think these projects take quite a
long time to bring to gestation, but you know, to
show you that we're people of action. Last year we
announced sixty million dollars worth of new growth projects and
what was quite obviously a difficult economic environment. So one
of those we're cracking on with at the moment. We're

(02:31):
building New Zealand's largest what will be New Zealand's largest
debt tank and partnership with their Energy, and we are
partnering with Higgins to build a bit of an import
terminal facility at Marsden Point, which obviously, given all the
raating that's projected to go at Northoland, is fantastic. So
these are things we're just getting on with now.

Speaker 1 (02:49):
You're liking the Northport thing if it comes to pass,
does that affect you majorly or not? Really?

Speaker 2 (02:54):
Not really. There are neighbors over the fence. They're very
good neighbors of ours, and obviously what's good for them
is good for us.

Speaker 1 (03:02):
Good stuff. Rob appreciate it very much. Probably don't hold
parties and keep you up at night as well. So
it's good to have good neighbors, isn't it. Rob Buchanan,
who's out of a channel infrastructure in the northern part
of the country. For more from the Mike Asking Breakfast,
listen live to news talks.

Speaker 2 (03:16):
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