Channel Infrastructure NZ (NZE:CHI, ASX:CHI) is preparing tanks to store nearly 90 million additional liters of diesel that New Zealand's government has secured under a contract with Z Energy, the government said Monday.

The project is due for completion in the coming weeks, and the government expects the diesel to be in the refurbished tanks at Marsden Point as soon as the close of June.

"This is an ambitious project that will help strengthen New Zealand's fuel storage capacity, providing a valuable contribution to our short-term supply needs," Finance Minister Nicola Willis said.

Channel Infrastructure's Kiwi shares closed 1% higher on Monday.