Refining NZ exits refining, moves into storage and distribution
Refining NZ operates the only-fuels refinery in New Zealand and supplies 65-70% of the country's fuel demand for the main petroleum products (gasoline, jet fuel and diesel). The refinery operates as a toll manufacturer for its three shareholders (Z Energy, BP and Mobil). The three shareholders of Refining NZ have unanimously agreed on 6 August 2021 to convert the refinery at Marsden point into a dedicated fuel import terminal after a 16-month strategic review to improve its cost and supply chain competitiveness for long term sustainable operations. The decision will see the end of refining operations at New Zealand’s sole refinery by mid-2022. In this insight, we will look to address structural issues facing Refining NZ and share our views on what are the new changes to expect. We will explore the impact to New Zealand's oil product balances and how the increasing oil product deficits will likely be met.