Several parties have been calling for action on the lack of storage, including PrimePort Timaru, Federated Farmers and Aoraki Development Business and Tourism. 

Chevron spokeswoman Sharon Buckland said the company would update the status of its tanks at the port, which were closed in late 2010, once its network review was completed “later this year”. 

“Z Energy and Chevron have had commercial discussions about Chevron’s terminal tanks in Timaru and elsewhere. Those discussions are commercially sensitive; Chevron is not prepared to discuss them publicly. “Z Energy and Chevron are competitors. Chevron is not obliged to provide Z Energy with the means to improve its market position, to the possible detriment of Chevron’s own operations.” 

She said Chevron was reviewing all its terminal and storage facilities around the country and, until that was completed, it would not make any announcements about its Timaru tanks or entering into any commercial arrangements that might limit their options. 

“There is currently sufficient storage capacity at Timaru, through Z Energy’s terminal there. Whether or not there is sufficient demand for Chevron’s Timaru terminal to be reopened, particularly in the wake of new concerns about Christchurch storage capacity post-earthquakes, has yet to be determined. 

“Diesel supplies in the lower South Island continue to fluctuate according to competitive activity and customer demand. A sustainable fuel supply to the region is one aspect of our network review.” PrimePort chief executive Jeremy Boys said with Chevron mothballing its tanks, it had halved Timaru’s storage. 

“Diesel supply in particular is compromised because the time between vessel calls can no longer keep pace with the usage in South Canterbury and beyond. “It is now typical for supply having to be maintained for several weeks each month by trucking fuel from Christchurch or Otago. This seems wrong from many standpoints – more tankers on the road and the creation of a dependency for our rural regions that we retain priority if supply becomes stretched, an issue which has already been exposed by shortages.” 

Mr Boys said he was hopeful Chevron could respond to Z’s and the region’s concerns in a “positive vein”. Z spokesman Jonathan Hill said the company was not in talks with Chevron at the moment. 

While Z would spend $10 million in additional fuel storage in the South Island, it wanted clarity on the future of the tanks at the port before looking at other options. 
Z’s tanks at the port primarily service South Canterbury, with fuel sometimes trucked to other areas such as Christchurch.