Refining NZ independent directors back import terminal

The three independent directors of the operator of New Zealand’s sole 135,000 b/d Marsden Point refinery have urged shareholders on August 6 to approve a plan to convert the venture to an import terminal.

If approved by shareholders, Refining NZ will target to make a final investment (FID) on the conversion by the end of the July-September quarter to allow the import terminal to start around mid-2022.

The three directors are representatives of the firm’s largest shareholders ExxonMobil, BP and domestic fuel marketer Z Energy. Refining NZ already has commercial agreements with BP and Z Energy for operating as an import terminal. Refining NZ is still in discussions with ExxonMobil but expects to have an agreement completed before the FID. BP, ExxonMobil and Z Energy own a combined 43 percent of Refining NZ.

If the conversion plan is approved, Refining NZ will no longer have to carry out maintenance on the refinery’s hydrocracker, which was to cost NZ$25mn ($17.5m), the company said.

The conversion work is estimated to cost around NZ$200mn-220m over five to six years following the FID. An additional NZ$60m is required to prepare storage tanks for private storage services and another N$50mn-60m for the demolition of the decommissioned refinery assets, with the timing yet to be determined. The company will also change its name to Channel Infrastructure should the conversion be approved.

For more information visit www.refiningnz.com

5th July 2021