Channel Infrastructure has initiated a $50 million capital raise to fund the next phase of its transformation of the Marsden Point site into a modern energy precinct. Trading of the company’s shares has been temporarily halted and will resume following the completion of the Institutional Entitlement Offer and Institutional Bookbuild.
The Marsden Point facility, which previously operated as an oil refinery, is undergoing conversion into a fuel import terminal, a process currently 85% complete and expected to conclude in 2027. Channel Infrastructure is also positioning the site as an energy hub, aiming to attract businesses focused on cleaner and sustainable fuels.
The company recently secured a 15-year agreement with Higgins, a Fletcher Building Limited subsidiary, to develop a bitumen import terminal at Marsden Point. This deal adds to two other contracts signed this year: a 10-year jet fuel storage agreement with Z Energy and a 7-year transmix storage and export contract with BP, Mobil, and Z Energy. Combined, these contracts are projected to generate $120 million in additional revenue over 15 years for an investment of $55–$66 million in capital expenditure.
Chief Executive Rob Buchanan expressed optimism about the site’s growth potential, including additional storage capacity and broader development as an energy precinct. The Marsden Point site covers 180 hectares, 120 hectares of which remain available for future energy sector projects.
The $50 million capital raise, starting immediately at a 10.1% discount to the current share price, seeks contributions from existing shareholders and institutional and retail investors, with Forsyth Barr underwriting the initiative.
Channel Infrastructure Chair James Miller highlighted the site’s potential to support New Zealand’s energy transition, citing opportunities for lower-carbon fuels, energy storage, and resource-efficient developments. The company remains focused on serving as a landlord to firms driving climate-friendly innovations rather than engaging in fuel manufacturing itself.
While emphasizing the long-term vision for Marsden Point as a low-carbon energy hub, Channel Infrastructure acknowledged that the transition to cleaner fuels might progress more gradually than initially anticipated.
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