An investigation into a possible reopening of the refinery in Northland, which was until its closure in 2022 New Zealand’s only refinery, was agreed in the New Zealand First Coalition Agreement with the National Party.
The agreement includes the establishment of a fuel security plan to safeguard New Zealand’s transport, logistics and emergency services from any domestic or international disruption.
“Despite the desire we all share to see New Zealand free of its reliance on fossil fuels in the near future, that is the stuff of fairytales. New Zealand will continue to need gas and coal to keep our economy moving for decades to come,” Mr Jones says.
“When Marsden Point Oil Refinery closed, not only did it rob Northland of a major employer, but it also potentially put New Zealand’s fuel security at risk. It was responsible for producing the majority of our jet fuel, all shipping fuel oil and more than half of our diesel.
“A significant and sustained disruption to our engine fuels would cripple our industries and put New Zealanders in hardship. That’s why I am commissioning this study into New Zealand’s fuel security requirements.”
The work will also include planning for transitioning to low carbon fuels and consideration of the infrastructure needed to increase the use of methanol and hydrogen to ensure New Zealand has sovereign fuel resilience.
A Request for Proposals is being developed and the study is expected to begin later this year.
Shane Jones is the Deputy Leader of the NZ First party and the Minister for Oceans and Fisheries, Minister for Regional Development, Minister for Resources, Associate Minister of Finance, and Associate Minister for Energy for the Coalition Government. This article was sourced HERE
“Despite the desire we all share to see New Zealand free of its reliance on fossil fuels in the near future, that is the stuff of fairytales. New Zealand will continue to need gas and coal to keep our economy moving for decades to come,” Mr Jones says.
“When Marsden Point Oil Refinery closed, not only did it rob Northland of a major employer, but it also potentially put New Zealand’s fuel security at risk. It was responsible for producing the majority of our jet fuel, all shipping fuel oil and more than half of our diesel.
“A significant and sustained disruption to our engine fuels would cripple our industries and put New Zealanders in hardship. That’s why I am commissioning this study into New Zealand’s fuel security requirements.”
The work will also include planning for transitioning to low carbon fuels and consideration of the infrastructure needed to increase the use of methanol and hydrogen to ensure New Zealand has sovereign fuel resilience.
A Request for Proposals is being developed and the study is expected to begin later this year.
Shane Jones is the Deputy Leader of the NZ First party and the Minister for Oceans and Fisheries, Minister for Regional Development, Minister for Resources, Associate Minister of Finance, and Associate Minister for Energy for the Coalition Government. This article was sourced HERE
10 comments:
Bravo Shane. This makes too much common sense. Like NZ the progressive liberal idiots in the States destroyed Trump’s sound policies from being an independent net exporter to dependent importer in a very short period of time. We old buggers remember the oil shocks of the 70s before the “save the planet idiots were born”. This won’t be cheap. Not only did they close down Marsden they vandalised critical sections of the plant.
SJ is spot on.
Efforts to lower NZ’s fossil-fuel emissions didn’t necessitate closing the oil refinery and putting NZ’s energy security at such great risk. Yet another example of incompetence by the last government.
LFC
Oh my. The impotent wailing and gnashing of teeth going on at the Green party headquarters would be a sight to see.
High quality roading bitumen was a bi product of Marsden Point refinery and the NZ pothole dilemna may just be the outcome from poorer quality imported bitumen product .
The significant issue is however that it is a private company that now owns Marsden Point , not NZ Government
Quality bitumaen, CO2 for the beverage industry, plus most of our aviation fuel and diesel were produced at Marsden Point. Growth and security of NZ's economy were well down the list of priorities for the previous government - demolition appeared to be their game.
Jacinda didn't have the balls to stop the private company from either mothballing, or demolishing Marsden Pt - an absolutely essential element in our fuel dependency.
But she did wake up one morning and thought it would be a good idea to destroy our oil and gas industry esp. Taranaki.
Oh , how virtuous !
What an idiot to think like that !
And just as irresponsible are the woke followers who elected her to run NZ.
The idea of a NZ based refinery is good but put it in Taranaki.
The currently produced oil would supply better than 25% of NZ needs. There is a built site at the Motunui methanol plant where a refinery was built but soon shut, it sits at the center of production and surprisingly consumption also.
It makes more sense to refine local production and use it for strategic buffer to comply with our currently outsourced strategic reserves.
NZ producers would also get a better price no transport costs.
Basil, if the Government at the time, had any commercial brains they would have approached the company and said "we will buy the refinery off you. We will pay you say half the decommissioning cost". This means the company is far better off and NZ retains it's energy security. The government could have probably offered a much lower figure and the company would have accepted it.
This is a common approach in the O&G industry, when oil or gas wells near the end of their productive life ---small companies with much lower overheads are able to squeeze a bit more profitable life from the well and the big guys are relieved of what they perceive to be a problem.
At the time the decision was made I think refinery businesses around the world were battling. In Australia the Government made sure their refineries did not close (I'm not sure what aid they gave).
There has been action..
https://reinstatemarsdenrefinery.nz/our-mission
About time
Marsden Pt should be Nationalised & put back into full production & we should look into building another refinery in Taranaki with the money promised by Ardern as her gift to the Paris Accord. Fuel security & a cap on pricing is key to lifting NZ out of the fiscal hole Labour dug for us. Cheap jet fuel, diesel & LPG would cause a domino effect that would eventually lower our obscene cost of living crisis...
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