Channel Infrastructure NZ Limited (ASX:CHI): Fuel Throughput and Storage Projects in Q3 2026

Aditi Sarkar

15 October 2026 08:18 PM AEDT

Channel Infrastructure NZ Limited (ASX:CHI): Fuel Throughput and Storage Projects in Q3 2026

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Highlights

Fuel throughput reached 829 million litres in Q3 2026, with jet fuel accounting for 330 million litres.
The terminal received and discharged 14 import shipments during the quarter.
Repurposing work began in September for a 15-year additional storage contract.
Conversion project spending reached approximately $194 million by 30 September 2026.
Net borrowings stood at $365 million at quarter-end following the interim dividend payment.

Channel Infrastructure NZ Limited (ASX:CHI) operates fuel import, storage, testing and distribution infrastructure centred on Marsden Point in New Zealand. Its terminal and pipeline serve fuel markets in Auckland and Northland. The company’s Q3 2026 operating update, released on 15 October 2026, details throughput, additional tank capacity projects and its funding position at 30 September 2026.

Quarterly Fuel Volumes and Terminal Activity

Channel Infrastructure (ASX:CHI) handled 829 million litres of fuel during the three months ended 30 September 2026. Jet fuel accounted for 330 million litres, diesel for 258 million litres and petrol for 242 million litres. The individual fuel figures are reported rounded and therefore do not add precisely to the stated total.

The business received and discharged 14 import shipments during the quarter. Approximately half of its contracted revenue is derived from fixed or capacity-based charges, while the balance is linked to fuel throughput. This structure means movements in the volume of fuel handled are relevant to revenue, but they do not determine the whole revenue outcome.

Additional Tank Capacity Under a 15-Year Agreement

A significant development for Channel Infrastructure (ASX:CHI) was the start of tank repurposing in September 2026 under a 15-year agreement with bp. The contract covers additional jet fuel and diesel storage at the Marsden Point Energy Precinct. The company estimates revenue of approximately $130 million over the full contract term, rather than as an immediate receipt or a single-year amount.

The quarterly update states that the repurposing work was progressing to plan, without specifying a completion date. The agreement therefore represents contracted future activity, while construction and commissioning requirements remain relevant to delivery.

Conversion Spending and Infrastructure Timelines

Channel Infrastructure (ASX:CHI) reported cumulative conversion project spending of approximately $194 million at 30 September 2026, compared with approximately $193 million at 30 June 2026. The company described expenditure as within budget. It also stated that the bitumen import terminal construction contract remained on track for delivery in late Q4 2026.

Work on the final stage of the site’s bund upgrade programme was scheduled to continue through the end of 2027. These projects relate to the continued adaptation of the Marsden Point facility for fuel storage and associated services. Their stated timing remains subject to execution and commissioning.

Borrowings and Shareholder Distributions

At 30 September 2026, Channel Infrastructure (ASX:CHI) reported net borrowings of $365 million, compared with $346 million at 30 June 2026. Management attributed the increase to the interim dividend payment. A net dividend of $22.2 million was paid in September 2026, and 20.3 per cent of shareholders participated in the dividend reinvestment plan.

The operating release does not provide a quarterly profit figure. Accordingly, fuel volumes, committed storage revenue and reported borrowings should not be treated as evidence of a particular quarterly earnings result.

Key Insights

Channel Infrastructure (ASX:CHI) reported 829 million litres of quarterly fuel throughput while advancing tank repurposing and other infrastructure works at Marsden Point. The 15-year storage agreement adds a long-duration contracted project to an operating model combining capacity-based and throughput-related charges. Project delivery, fuel demand and financing remain relevant considerations, and the Q3 operational update does not quantify quarterly profitability.

FAQs

Q: What is Channel Infrastructure’s main business?

A:It operates fuel import, storage, testing and distribution infrastructure, including the Marsden Point terminal and associated pipeline services.

Q: How much fuel passed through the terminal in Q3 2026?

A:The company reported total throughput of 829 million litres.

Q: What does the new storage agreement cover?

A:A 15-year bp contract provides for additional jet fuel and diesel storage, with approximately $130 million of estimated revenue over its term.

Q: How much had been spent on conversion projects?

A:Cumulative conversion spending was approximately $194 million at 30 September 2026.

Q: What were net borrowings at quarter-end?

A:Net borrowings were $365 million at 30 September 2026.

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