Channel Infrastructure NZ (CHI) Status Update summary

Strategic vision and growth opportunities

• Marsden Point Energy Precinct aims to unlock value by attracting high-quality tenants to 120 hectares of unutilized land, supporting New Zealand's energy transition and fuel security.

• The strategy focuses on being a precinct landlord, earning long-term contracted or lease income, and increasing utilization of existing infrastructure like the jetty and pipeline.

• The company avoids direct investment in fuels manufacturing, instead providing infrastructure and ancillary services to tenants.

• Over 50% of revenues are now fixed and independent of fuel throughput, with further diversification expected as new projects are realized.

• The Energy Precinct concept is designed to minimize CapEx and OpEx while maximizing upside and revenue growth through strategic partnerships.

Operational excellence and infrastructure upgrades

• Achieved 100% availability for jetty and tank infrastructure, with pipeline performance exceeding world-class standards.

• Significant investments include over NZD 90 million in firefighting and bund upgrades, and the addition of floating suction arms to jet fuel tanks.

• Employee engagement has increased by over 26% following the transition to the new business model and strategy.

• The conversion program is over 85% complete, with visual upgrades such as automated fire systems and tank conversions underway.

• Strong safety culture, with zero process safety incidents and loss time injuries in H1 2024.

Updated fuel demand and market outlook

• Long-term fuel demand outlook anticipates stable or growing demand for jet fuel, offsetting declines in petrol and diesel through to 2060.

• Marsden Point is delivering a growing share of New Zealand's fuel requirements due to its unique infrastructure and deepwater port.

• Updated outlook projects an additional 2.5 billion litres of fuel through the site over 2024-2050.

• Jet fuel demand underpinned by aviation decarbonisation and Auckland Airport's growth plan.

• Electrification is expected to drive petrol decarbonization, while biofuels remain a niche for diesel.