NZ’s Marsden Point refinery halves production

The Marsden Point oil refinery, operated by Refining New Zealand at Whangarei on the east coast of the North Island of New Zealand, is halving production for at least the next three months due to falling fuel demand in the country.

Refining NZ, whose major shareholders (and major customers) are BP, Mobil, and Z Energy, said the plan is to produce less fuel with fewer staff by closing down sections of the plant and concentrating on key fuels.

Managing director Paul Zealand said the immediate focus in this period of uncertainty is to continue to operate the refinery and the pipeline to Auckland safely to meet customers’ reduced need for high quality transport fuels.

“We will continue contribute to the security of New Zealand fuel supply,’ he added.

The staff numbers will be cut by two thirds, leaving 200 people on site. Other staff will be working remotely to ensure the back-room operations continue.

Mr Zealand said that supplies of crude oil from overseas have not been disrupted and are arriving as scheduled, but it is likely that with reduced demand, the refinery’s stocks of various products will rise.

All construction work at the refinery will also cease for the moment except projects required for the refinery’s safe operation.

Source: Oil & Gas Journal