A senior New Zealand government minister has indicated that the country is considering establishing fuel reserves in Malaysia and Singapore, as risks related to insufficient fuel stockpiles have become more apparent due to the conflict in Iran.

New Zealand's Minister of Resources, Shane Jones, stated in an interview, "There is no surplus storage capacity available domestically. We have explored alternative options, and officials have assessed the feasibility of offshore fuel storage. One of the proposals put forward by specialized institutions involves locating reserves in Malaysia and Singapore."

In 2022, New Zealand lost a significant portion of its fuel storage capacity following the closure of the Marsden Point refinery, the country's only such facility, located north of Auckland. The region around Singapore and southern Malaysia serves as a major hub for fuel refining and storage in Asia.

Escalating conflict in Iran and disruptions to shipping through the Strait of Hormuz have placed considerable pressure on Asian nations, which rely heavily on oil and gas resources from the Middle East. This has prompted countries to secure energy inventories and ensure stable supplies.

Last month, the government led by Prime Minister Christopher Luxon signed an agreement with New Zealand's channel infrastructure company to repurpose storage tanks at the former refinery site for diesel reserves. The company currently operates a fuel import terminal at the location.

Additionally, the New Zealand government reached an agreement last week with a subsidiary of Australian fuel company Ampol, Z Energy, to secure an additional diesel supply sufficient for nine days of demand. The country is also evaluating whether further increases in jet fuel reserves are necessary.