25/06/2013 - Industry insights
Ever wondered what would happen if there was a global shortage of fuel? Well we have, and so has the New Zealand Government. New Zealand has been a member of the International Energy Agency (IEA) since 1977. The IEA was set up after the fuel shortage of the seventies as a way to provide reliable, affordable and clean energy worldwide. Today the IEA has 28 countries as members and is slowly growing.
So what does it mean for New Zealand?
It means that as a member of the IEA we have an obligation to have at least 90 days’ worth of fuel in storage at any one time. New Zealand only has the storage capacity to hold about a third of the stock that is believed to be required to get us through a global fuel shortage, so the New Zealand Government has put contracts in place with other members of the IEA, including: Japan, the Netherlands, Australia and the UK. These contracts will allow us to purchase our shortfall (around 155,000 Tonne of crude) at the market price.
For more information on the IEA visit their website www.iea.org
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