New Zealand places no minimum stockholding obligation on industry. Until the recent acquisition of government owned-ticket reservations, New Zealand relied on the industry's normal stockholding practices to meet the country's overall minimum 90-day net import obligation as a member of the IEA.
From 1 January 2007, the New Zealand government acquired ticket reservations for stocks held in other IEA member countries, representing around 3.7 mb of public stocks in 2007, 2.1 mb in 2008, and around 0.8 mb in 2009 and 2010. Because of its growing domestic production in recent years, New Zealand’s net imports have dropped, thereby reducing its IEA stockholding obligation.
All tickets are held directly by the New Zealand government, rather than through an agency on the government's behalf. The public stocks held in other countries are a mix of refined product stocks (the majority of which is in the form of gasoline) and crude oil.
The New Zealand Government has entered into government to government agreements with Australia and the UK, and has concluded formal treaties with the Netherlands and Japan to enable stocks held in those countries to count towards New Zealand's IEA obligations. In an IEA coordinated emergency action, these stocks held outside of the country may be released onto the global market. If needed domestically, the stocks can be purchased and transported directly or swapped with stock held closer to New Zealand in order to reduce transport costs and delivery time.
See also Closing Oil Stock Levels in days of Net Imports
Print this Page