The Channel Infrastructure NZ Ltd (ASX: CHI) share price is on watch as the company announced a major new contract with bp for expanded jet and diesel storage at Marsden Point, expected to deliver around $130 million in revenue over 15 years. Channel plans to invest approximately $65–70 million in repurposing storage tanks to support this long-term partnership.
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What did Channel Infrastructure NZ report?
- Signed a 15-year contract with bp for extra jet and diesel storage at Marsden Point
- Contract estimated to generate ~$130 million revenue over the initial term (before indexation)
- Growth capital expenditure of $65–70 million planned for tank repurposing (2026–2028)
- Project to be funded via existing debt facilities
- Operating expenditure to increase by $0.7–0.9 million per year to support growth
- In-service contracted storage at Marsden Point increased by 40% over three months
What else do investors need to know?
Channel Infrastructure's new deal with bp marks a big step in growing its role in New Zealand's fuel supply chain. The company will begin work to repurpose existing tanks in September 2026, aiming to complete the project and start revenue in Q3 2028.
The investment is part of a broader plan to unlock Marsden Point's strategic value, supporting fuel resilience and future energy transition opportunities. Channel has also recently increased its contracted storage and continues to look for further opportunities for growth, including supporting lower-carbon fuels and energy security projects.
What's next for Channel Infrastructure NZ?
Looking ahead, Channel Infrastructure is focused on delivering the Marsden Point expansion and maximising its position as New Zealand's leading fuel import terminal. Management remains committed to supporting the country's energy transition, leveraging available storage capacity and land for new fuel security and renewable projects.
The company also retains strategic interests outside Marsden Point, including a stake in the Somerton pipeline to Melbourne Airport and a fuel testing business, positioning it well for long-term industry shifts.
