Channel Infrastructure NZ Limited (CHI), New Zealand’s largest fuel import terminal business, storing and distributing 40% of New Zealand’s transport fuel, including 80% of New Zealand’s jet fuel, has released its operational update for the quarter ended 31 December 2025. The company reported a total fuel throughput of 945 million litres for the quarter, a 3.9% increase compared to Q4 2024. This figure represents the highest throughput quarter since import terminal operations commenced in 2022. Approximately 50% of Channel’s contracted revenue is based on fixed or capacity-based fees, with the remaining portion tied to fuel throughput volumes.
The company highlighted that Q4 2025 marked its highest jet fuel throughput quarter since Q1 2019. However, the full-year throughput volume aligned with the company’s expectations, reflecting Air New Zealand’s previously reported aircraft availability issues. Petrol and diesel throughput for the year surpassed the previous corresponding period (FY24), remaining broadly in line with the Envisory fuel demand outlook. Channel Infrastructure also reported receiving and discharging 13 import shipments during the quarter, an increase in larger long-range vessels being received at Marsden Point.
Channel Infrastructure provided an update on its growth projects. The Z Energy jet storage project is progressing ahead of schedule and within budget, with delivery expected in the second half of 2026, earlier than the initial Q1 2027 timeline. Construction of the bitumen import terminal remains on track for delivery in the second half of 2026. Activities related to the additional storage contract, announced on 26 August 2025, are proceeding as planned and are expected to commence Q1 2028. This contract is set to generate $50 million in additional revenue over its nine-year extension (pre-PPI indexation).
Net borrowings increased to $330 million as of 31 December 2025, compared to $311 million on 30 September. Conversion spending totalled approximately $196 million as of 31 December 2025, remaining within the allocated budget. The bund upgrade program continues to progress according to plan, with the final phase of construction continuing through into 2027.
