-- Channel Infrastructure (NZE:CHI, ASX:CHI) confirmed an agreement with the New Zealand Government to add 93 million liters of diesel storage at its Marsden Point Energy Precinct, equivalent to around nine more days of national diesel demand, according to a Monday filing with the New Zealand and Australian bourses.
The storage, expected to be available by May 31 under a contract running through Dec. 31, 2027, is projected to generate around NZ$1.2 million in monthly revenue once operational, per the filing.
The work is already underway, including tank preparation, pipeline connections, and installation of pumping and instrumentation systems, the filing said.
The company expects to complete the project within its current debt capacity and anticipates it could generate about NZ$8 million in additional revenue in 2026, while maintaining earnings before interest, taxes, depreciation and amortization guidance of NZ$95 million to NZ$100 million amid ongoing uncertainty in fuel demand, the filing added.
The company's Kiwi shares gained 1% in recent Monday trade.