Channel Infrastructure's (NZE:CHI, ASX:CHI) two refurbished tanks at Northland's Marsden Point, which will store New Zealand's strategic diesel supply, are officially in use, following an event attended by Prime Minister Christopher Luxon and senior government ministers to mark the completion and recommissioning of the tanks, according to a Tuesday government statement.

The Regional Infrastructure Fund committed up to NZ$21.6 million to Channel Infrastructure to refurbish enough capacity at Marsden Point to store an additional 93 million liters of diesel, with the tanks completed in early June and ready to receive the first of two shipments for the strategic diesel supply, per the statement.

The government said it secured additional diesel and storage capacity when the Middle East conflict escalated.

Z Energy was selected to supply and manage the 90 million liter diesel reserve, with Z Energy owning and managing the reserve, while the Crown will control its release to the market if needed, the government added.

The first of two shipments of the diesel reserve has arrived at the facility, with the second expected later this month, while fuel stock reporting will return to its standard weekly schedule as global supply conditions continue to stabilize, it added.

The company's New Zealand shares fell almost 1% in recent Tuesday trade.