Does the Defence Force have enough fuel for war or disaster? Authorities won't say
Wednesday, 22 July 2026
Defence is running 18 months behind on upgrading a major fuel depot crucial to national reserves and during natural disasters that has been left to degrade till it was posing “significant risks”.
The delay of the $70 million-plus upgrade at Ōhakea comes as the Iran war continues to disrupt fuel supplies globally and when the Defence Force (NZDF) is under a new imperative to get combat-ready as soon as possible in case of imminent conflict.
The project got bound up in design and cost changes to the point last year it posed three of the top 10 risks in Defence's huge infrastructure and estate overhaul, official reports show.
It had aimed to increase the base's fuel holding capacity and provide a defueling capability required for new planes.
“The Ōhakea Fuels Precinct is not yet in full operational use,” Defence told RNZ this week.
“The facility will be fully operational in the first quarter of next year.”
That would be nine years since the project came across Cabinet's radar in 2018.
Ohakea near Palmerston North and Whenuapai base in Auckland hold a lot of fuel for the air force.
In addition, Ōhakea also serves as a coordination and logistics fuelling hub for all-of-government responses to civil emergencies, such as natural disasters, and as a “national strategic fuel reserve”, a 2023 Cabinet committee paper said.
'Increasing risks'
But the fuel precinct had got to the point it posed 'significant and increasing risks', said the 2023 paper. The risks were not specified.
Defence refused to detail the state of its fuel reserves to RNZ.
“For security reasons, NZDF does not disclose details of its fuel holdings or how they are managed.”
Its own strategies newly revised this year demand it can 'withstand shocks' and operate over extended periods.
RNZ asked the Defence Minister Chris Penk if he has sought assurances Defence had enough fuel for a conflict or disaster but his office said it was an operational matter and he had nothing to add to what the NZDF had said.
The country's fuel response plan for the Iran war puts defence and lifeline utilities in the first of five prioritisation bands, Band A for “life-supporting services - uncapped supply”.
'Lack of funding'
In 2020 Cabinet was told “infrastructure across the base has fallen into a state of disrepair”, including fuelling and logistics.
This was even as the demands on Ōhakea rose - so the government moved to accelerate an overall upgrade, with the fuel precinct put in the top priority basket.
About $200m was earmarked just for Ōhakea .
However by 2025 the whole base overhaul covering two dozen projects worth about half a billion was in trouble, rated 'red' or at-risk “due to the lack of funding”.
Reports showed it being “de-scoped and deferred”. Defence earlier said it could leave out single living accommodation, a logistics warehouse, and an explosives storehouse to save money but a Cabinet committee in 2023 did not agree.
RNZ revealed in 2024 how the Ōhakea overhaul missed out getting another $200m.
Nationally, work to maintain critical parts of the defence estate got about $100m in Budget 2025 over four years. On top of that are capital outlays for new regional supply facilities at the Burnham and Linton army camps.
The top risks around the Ōhakea fuel precinct in March 2025 included changes to design or 'inaccuracies' over the quantities of materials required that 'have caused an increase in cost'.
This forced Defence to draw $1m from a contingency fund.
'Essential for the NZDF to be able to deliver military outputs'
NZDF told RNZ: “While the project was originally scheduled for completion last October, construction was delayed due to a combination of international freights delays, adverse weather and other construction-related issues.”
It reached “practical completion” in March 2026 but still needs six-to-nine weeks of checks and certification - called “wet commissioning” as aviation fuel is gradually introduced - then more checks by the air force.
The upgrade was also to support the new P-8A Poseidon planes, said the Cabinet paper in 2023, though these arrived 2-3 years ago.
“Efficient refuelling operations and maintaining sufficient fuel supplies are essential for the NZDF to be able to deliver military outputs, respond to national emergencies, support the Pacific during a period of sharpening strategic competition and climate change effects, and support new capabilities such as the P-8A Poseidon.”
Dialog Fitzroy Limited got the $74m contract for the fuel precinct in late 2023. Defence refused to comment on any contractual issues around the delay.
In February 2025 Treasury required NZDF to provide a revised investment programme for it.
Ōhakea is among nine bases or camps needing $2-3 billion of upgrades to their military infrastructure but also housing and barracks.
This story was first published on rnz.co.nz