Channel acquires strategic position in Melbourne’s jet fuel supply chain

Channel Infrastructure has today announced the acquisition of a strategic 25% interest in the Somerton Pipeline Joint Venture jet fuel pipeline, a critical infrastructure asset in Melbourne’s jet fuel supply chain, for A$14.2 million.  The pipeline is operated by ExxonMobil, and the other joint venture owners are ExxonMobil, bp, and Viva Energy. 

 

 

This acquisition is part of Channel’s wider growth strategy, announced in August, which is centred on delivering the Marsden Point Energy Precinct, and identifying potential opportunities along the Auckland Jet Fuel supply chain, as well as step out opportunities in Australasia.

 

Commenting, Chief Executive Rob Buchanan said: “This is exciting for Channel as we look for growth opportunities that will enhance the quality of our overall business across New Zealand and Australia, while leveraging our capability and customer relationships in fuel infrastructure assets.  While our Marsden Point Energy Precinct redevelopment plan remains our number one growth priority, complementary opportunities like the Somerton jet fuel pipeline acquisition enable us to expand our footprint in liquid fuels markets where there are clear growth opportunities.”

 

Melbourne Airport travel is expected to grow strongly in the coming years, with no curfew and the addition of a third runway in the early 2030’s anticipated to enable a further 136,500 aircraft movements each year by 2046.

 

Rob Buchanan added: “Channel is a long-term investor in critical infrastructure and as part of considering this investment, we have also identified a number of adjacent growth opportunities in the Melbourne jet supply chain that have the potential to materially enhance the value of our investment and provide additional opportunities to invest further capital.  This acquisition reflects our selective and disciplined approach to growth investment, adds to the quality of our existing asset portfolio, and further deepens our relationship with our existing customers without requiring an operational presence in market.”

 

Separately, Channel today confirmed that it is well progressed with the application to list as a Foreign Exempt Listing on the Australian Stock Exchange (ASX), as announced at the half year results in August, and the company anticipates that admission into the official list of the ASX will occur in early 2026.

 

Rob Buchanan said: “This is another exciting step for Channel Infrastructure.  With a number of growth opportunities ahead of us, an ASX Foreign Exempt listing provides access to a broader pool of institutional and retail shareholders to support our continued growth.”

 

Channel continues to make good progress towards delivery of its wider growth programme, including projects that form part of the Marsden Point Energy Precinct, such as the biorefinery project, diesel-fuelled electricity peaker project, and bitumen import terminal.

 

Rob Buchanan added: “Channel’s Marsden Point Energy Precinct provides a long-term pathway to unlock the value of our highly strategic Marsden Point site through the projects we have under consideration.  We are working hard to help support energy resilience for New Zealand, and deliver transformational growth for Northland.”