Marsden Oil Refinery prepares for sleep mode

Thursday, 4 June 2020

Refining NZ has not confirmed speculation the suspension could last as long as eight weeks.

Refining NZ is planning to suspend refining at its Marsden Point oil refinery for several weeks in July and August to let fuel demand catch up with supply.

A Refining NZ spokeswoman said the company was still working through the details of the plan – which it first outlined to shareholders in May – and did not confirm speculation that the stoppage might be for as long as eight weeks.

The refinery would later resume operations, when new crude orders arrived, she said.

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Refining NZ said in its May update that demand for petrol and diesel had recovered to about 80 per cent of normal since New Zealand stepped down to coronavirus alert level 2.

But jet fuel demand was only about a quarter of its pre-lockdown level.

Refining NZ expects to report the results of a strategic review next month that could involve dramatic changes to its operations.

One of the options that has been under consideration would be for it cease refining and to switch instead to importing and distributing already-refined fuel products.