Acquisition of position in Melbourne jet fuel supply chain

NZX RELEASE
26 November 2025

Channel acquires strategic position in Melbourne’s jet fuel
supply chain
Channel Infrastructure NZ Limited (NZX:CHI) has today announced that it has acquired a strategic
25% interest in the Somerton jet fuel pipeline, a critical infrastructure asset in Melbourne’s jet fuel
supply chain for A$14.2 million.

Highlights
• A$14.2 million investment
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for a 25% interest in the Somerton Pipeline Joint Venture jet fuel
pipeline, funded through Channel’s existing debt facilities
• The Somerton pipeline is a dedicated jet fuel pipeline serving Melbourne Airport that forms
part of Australia’s critical jet fuel supply chain infrastructure
• The acquisition aligns with Channel’s strategic ambitions to enhance the overall quality of
the business with measured step-outs in New Zealand and Australia
• The acquisition is projected to be cash flow accretive from FY2026
• Organic growth is anticipated from continued route development at Melbourne Airport, the
construction of Melbourne Airport’s third runway complemented by significant embedded
opportunities for growth including jet supply chain expansion opportunities and the ability to
commit capital as opportunities become available
• The Somerton jet fuel pipeline is operated by ExxonMobil, a proven, safe and reliable
operator of critical infrastructure, enabling a lower-risk entry into the market

Chief Executive Rob Buchanan said: “This is a unique and exciting opportunity to invest into
infrastructure critical to the operation of Australia’s second busiest airport. 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.

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 which have the potential to
materially enhance the value of our existing investment and provide new capital deployment
opportunities, while adding to the resilience of jet fuel supply to Melbourne Airport.

This acquisition aligns with our ambitions for measured growth step-outs in Australasia focused on
adding to the quality of our existing asset portfolio, deepening our relationship with our customers
and expanding our footprint in liquid fuels growth markets.”

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On a cash free, debt free basis

Chair, James Miller said “This acquisition meets the disciplined investment criteria we apply to how
we allocate shareholders’ capital and establishes another footprint in the Australasian jet supply
chains which complements our strong position in the Auckland market. We remain focused and
committed to the work already underway in respect of opportunities for additional storage, fuel and
energy security projects within our Marsden Point Energy Precinct as well as consolidation along
our current supply chain to Auckland Airport. Alongside this we will continue to assess measured
step-outs in New Zealand and Australian markets as opportunities arise, and when they meet our
investment criteria.”

Strategic infrastructure asset with proven operator
The 34km Somerton jet fuel pipeline forms part of the only jet fuel pipeline supply chain servicing
Melbourne Airport, underpinned by long-term demand fundamentals for aviation fuel. The pipeline
is operated by ExxonMobil, providing confidence in operational excellence and reliability while
minimising Channel’s requirement for an operational presence in the market.

The transaction positions Channel to capture growth from Melbourne Airport, supported by
international route expansion, domestic population growth, recovery in aviation activity and a
planned third runway. During the evaluation of the pipeline, Channel identified a number of
embedded growth opportunities to further enhance the value of the asset either by upgrading
current infrastructure, improving the efficiency of adjacent infrastructure or through synergistic
consolidation along the Melbourne Airport jet fuel supply chain in the future.

Acquisition structure
Channel Infrastructure will acquire all the shares in DIF CIF I Australia Pty Ltd (the holding
company) for a net acquisition price of ~A$14.2 million (on a cash free, debt free basis) from CVC
DIF’s CIF I fund. The holding company has a 25% stake in the Somerton Pipeline Joint Venture
which owns the Somerton Pipeline. The other Joint Venture participants are ExxonMobil (37.5%),
Viva Energy (18.75%), and bp (18.75%). Channel has existing relationships with ExxonMobil and
bp as customers in New Zealand.

Financial impact
The acquisition will be funded through Channel’s existing debt facilities. Following the acquisition,
Channel will remain within its target credit metrics of between 3x and 4.5x Net Debt to EBITDA,
consistent with a shadow BBB/BBB+ credit rating.

The acquisition is expected to be cash flow accretive from FY2026. Channel confirms that current
EBITDA and dividend guidance for FY2025 remains unchanged at EBITDA of between $89 million
to $94 million and a dividend of between 12.0 and 12.5 cents per share.

Conference call
Channel Infrastructure’s Chief Executive, Rob Buchanan and Chief Financial Officer, Alexa Preston
will give a presentation on the acquisition at 10.00am (NZ time) today.

To access the audio call, dial 09 929 1687 (New Zealand) or 02 9007 3187 (Australia) and ask to be
connected to the Channel Infrastructure briefing. To pre-register for direct access to the call, go to
Event Registration

- ENDS -

Authorised by:

Chris Bougen
General Counsel and Company Secretary
Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com

About Channel Infrastructure

Channel Infrastructure is New Zealand’s largest fuel import terminal business, storing and
distributing 40% of New Zealand’s transport fuel, including 80% of New Zealand’s jet fuel. We
receive, store, test and distribute petrol, diesel, and jet fuel that our customers import and supply to
Auckland and Northland.
Fuel is imported via our deep-water harbour and jetty infrastructure at Marsden Point and stored in
more than 290 million litres of contracted storage tanks on site. The fuel is then distributed via our
170- kilometre pipeline to Auckland, or by our customers (bp, Mobil, and Z Energy) via truck into
Northland. We underpin the resilience of New Zealand’s fuel supply chain with our tank capacity,
which enables increased storage of fuel in New Zealand, and through efficient, low-emission
distribution of the fuel into the Auckland market. Given our proximity to Auckland, and critical role in
the jet fuel supply chain, Channel is well positioned to support the renewable fuel transition.
Our plan for growth includes supporting fuel resilience for New Zealand through additional fuel
storage on our site, unlocking the strategic value of the Marsden Point Energy Precinct Concept
which reflects the significant role Channel could play in supporting New Zealand’s energy transition
– through potential opportunities including supporting the manufacture of lower-carbon future fuels,
as well as a range of potential energy security opportunities, and exploring expansion beyond
Marsden Point.
Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum Laboratory Limited,
provides fuel quality testing services throughout New Zealand.
For more information on Channel Infrastructure, please visit: www.channelnz.com

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1
Channel acquires
strategic position
inMelbourne’s Jet
Fuel Supply Chain
26 November 2025

2
~A$14.2 million investment for a 25% sharein the Somerton jet fuel pipeline, funded through existing debt facilities
A dedicated jet fuel pipeline serving Melbourne Airport that forms part of Australia’s critical jet fuel supply chain
infrastructure
Aligns with Channel’s strategic ambitions to enhance the overall quality of the business with measured step-outs in
New Zealand and Australia
Projected to be cash flow accretive in FY2026
Organic growth anticipated from continued route development at Melbourne Airport, the construction of a third
runway complemented by significant embedded opportunities for growth including jet supply chain expansion
opportunities and the ability to commit capital as opportunities become available
Operated by ExxonMobil, a proven, safe and reliable operator of critical infrastructure, enabling lower-risk entry into the
market
Opportunity to further support our existing customers across multiple supply chains, as well as introducing a new
customer –Viva Energy
Acquisition highlights

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Transaction overview
Channel has acquired a 25% share in the Somerton Pipeline Joint Venture, the owner of the Somerton jet fuel pipeline for
A$14.2m, a high-quality asset forming part of the only jet fuel pipeline supply route to Melbourne Airport
1. Cash-free debt-free basis
Transaction
summary
•Acquisition price of A$14.2m
1
for 25% share in the Somerton Pipeline Joint Venture acquired from CVC DIF’s CIF I fund
•Implied transaction multiple is below Channel’s current EV/EBITDA multiple
Regulatory
approvals and
timing
•Australian Foreign Investment Review Board approval to the transaction has been granted
•Acquisition only conditional on completing warranty and indemnity insurance placement
•Settlement scheduled for 28 November 2025
Enhanced
shareholder value
•Cash flow accretive from FY2026
•Organic growth anticipated from Melbourne Airport growth
•Significant embedded growth options
•Channel’s share of the Joint Venture will be proportionately consolidated into Channel’s financial statements
Funding
•Funded through Channel’s existing debt facilities. Following the acquisition, Channel will remain within its target credit
metrics of between 3x and 4.5x Net Debt to EBITDA, consistent with a shadow BBB/BBB+ credit rating

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Strategic rationale
•The Somerton Pipeline forms part of the only jet fuel pipeline supply chain
servicing Melbourne Airport, Australia’s second busiest airport
•Solid jet fuel growth outlook at Melbourne Airport, supported by
international route expansion, domestic population growth, recovery in
aviation activity, a planned third runway and Melbourne Airport being
unconstrained by an operating curfew
•The pipeline operates below its maximum throughput capacity providing
headroom to accommodate organic growth
•Enhances the quality of Channel’s overall business with a
complementary dedicated jet fuel asset in a high growth market
•The Somerton jet fuel pipeline is operated by ExxonMobil, a proven world-
class, safe and reliable operator of critical infrastructure so there is no
requirement for Channel to establish an operational presence in
Australia at this stage
•Builds on relationships with existing customers and provides the
opportunity to support new customers
•Significant embedded growth opportunities to further enhance the value
of the asset either by upgrading the current infrastructure or through
synergistic consolidation along the Melbourne Airport jet fuel supply chain
Above WACC returns
Stable inflation-linked revenues
Cash flow accretive in FY2026
Measured step-outs in New Zealand and
Australia
Supports Channel’s existing customers
Dedicated jet fuel asset in a growing market
Significant embedded growth opportunities
Funding within target leverage range of 3-4.5x
consistent with BBB/BBB+ shadow credit metrics
Delivers value to Channel’s investors within established
parameters

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Melbourne Airport Jet Fuel Supply Chain
Viva Geelong
Refinery
Viva Newport
Terminal
Mobil Altona
Terminal
Mobil Yarraville
Terminal
Proven operator ExxonMobil
JV Owners:
•Channel Infrastructure 25%
•ExxonMobil 37.5%
•Viva Energy 18.75%
•bp 18.75%
~10km pipeline from Somerton
Depot to Melbourne Airport JUHI
Capacity of 4.4 million litres / day
Melbourne AirportSomerton DepotSomerton Pipeline JVTullamarine Pipeline
Other Terminals
Trucking
Acquisition
~34km pipeline from terminals and
refineries to Somerton Depot
Capacity of 16.3 million litres / day
Owners:
•ExxonMobil 50%
•Viva Energy 25%
•bp 25%
Owners:
•ExxonMobil 50%
•Viva Energy 25%
•bp 25%
2024 Metrics
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•~2,500 million litre jet fuel
demand
•239k aircraft movements
•36 million passengers
Australia’s second busiest
airport
1. Calendar year 2024

6
0
50
100
150
200
250
300
350
400
450
2010201220142016201820202022202420262028203020322034203620382040204220442046
Aircraft Movements ('000)
Historical rolling 12 monthsConstrainedUnconstrained
Melbourne Airport historical and forecast aircraft movements
1.Forecasts from Melbourne Airport’s Major Development Plan (“MDP”). Sources: BITRE, Australia Pacific Airports (Melbourne) Pty Ltd (APAM), Landrum & Brown 2019 (as cited by APAM)
2.Capacity constraints in Melbourne Airport’s existing runway system limits its ability to accommodate forecast demand. Once operational, the third runway will increase capacity, allowing for a step-change
and growth in aircraft movements. Melbourne Airport has published both constrained and unconstrained forecasts as part of MDP.
Significant growth in aircraft movements forecast by Melbourne Airport
1
, including a step change following completion of a third runway
Melbourne
Airport’s Third
Runway expected
to be operational
2031/2032
22

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•This presentation contains forward-looking statements concerning the
financial condition, results and operations of Channel Infrastructure NZ
Limited (“CHI”).
•Forward-looking statements include among other things, statements
concerning the potential exposure of CHI to market risk and statements
expressing management’s expectations, beliefs, estimates, forecasts,
projections and assumptions. Forward-looking statements are identified
by the use of terms and phrases such as “anticipate”, “believe”, “could”,
“estimate”, “expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, “plan”,
“probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similar terms
and phrases.
•This presentation is for information purposes only and does not constitute
legal, financial, tax, financial product advice or investment advice or a
recommendation to acquire CHI’s securities and has been prepared
without taking into account your individual objectives, financial situation or
needs. Before making an investment decision, you should consider the
appropriateness of the information, having regard to your own objectives,
financial situation and needs and consult an NZX Firm or solicitor,
accountant or other professional adviser if necessary. Forward-looking
statements should be read in conjunction with CHI’s financial statements.
You should not place undue reliance on forward-looking statements.
•Forward-looking statements are subject to the risks and uncertainties
associated with the fuels supply environment, including price and foreign
currency fluctuations, regulatory changes, environmental factors,
production results, demand for CHI’s products or services and other
conditions. Forward-looking statements are based on management’s
current expectations and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed, implied or inferred from
the forward-looking statements in this presentation.
Important Information
•CHI does not guarantee future performance and past performance
information is for illustrative purposes only. To the maximum extent
permitted by law, the directors of CHI, CHI and any of its related bodies
corporate and affiliates, and their officers, partners, employees, agents,
associates and advisers do not make any representation or warranty,
express or implied, as to accuracy, reliability or completeness of the
information in this presentation, or likelihood of fulfilment of any forward-
looking statement or any event or results expressed or implied in any
forward-looking statement, and disclaim all responsibility and liability for
these forward-looking statements (including, without limitation, liability for
negligence).
•Except as required by law or regulation (including applicable Listing Rules),
CHI undertakes no obligation to provide any additional or updated
information whether as a result of new information, future events or results
or otherwise.
•Forward-looking figures in this presentation are unaudited and may
include non-GAAP financial measures and information. Not all of the
financial information (including any non-GAAP information) will have been
prepared in accordance with, nor is it intended to comply with: (i) the
financial or other reporting requirements of any regulatory body; or (ii) the
accounting principles generally accepted in New Zealand or any other
jurisdiction with IFRS. Some figures may be rounded, and so actual
calculation of the figures may differ from the figures in this presentation.
Non-GAAP financial information does not have a standardised meaning
prescribed by GAAP and therefore may not be comparable to similar
financial information presented by other entities. Non-GAAP financial
information in this presentation is not audited or reviewed.
•Each forward-looking statement speaks only as of the date of this
announcement, 26 November 2025.