Air New Zealand has expressed concern that damage to New Zealand's only oil refinery could easily cripple domestic oil supplies with a grave impact on freight, air travel and tourism.
In a submission to the Ministry of Business, Innovation and Employment's review of the country's oil security, the company said that the Marsden Point refinery near Whangarei is a weak point in the domestic supply chain because its off-loading wharf, pipelines, storage facilities and refinery are all closely linked. This "interdependence", the company said, means that the capacity to import refined fuel could be compromised in an event where the refinery itself was damaged. "Fires do happen in well- run refineries," the company's submission warns.
Air New Zealand also said that the ministry's report has understated the tsunami risk to Marsden Point, urging for more work to better understand the potential impacts on the refinery and its wharves. "Just because an event is one in 2500 years doesn't mean it can't happen tomorrow," said the company, citing the experience of refineries along Japan's east coast which were affected by the 2011 tsunami.
In its own submission to the ministry, Marsden Point owner Refining NZ noted the potential costs of any downtime at the facility, but also stressed its strong safety record. According to the company, its annual rate of unplanned downtime on key processing facilities was 1.3% for the year to February 2011 and it has recently achieved two million hours' work without a lost-time incident. Refining NZ also said that further investment in pipelines from Marsden Point to Auckland and development of the Wiri oil terminal in South Auckland will improve supply security.
Air New Zealand's submission, meanwhile, calls for a new fuel storage depot in west Auckland to supplement the existing Wiri depot. However, Refining NZ and Wiri Oil Services - a joint venture with BP, Chevron, Mobil and Z Energy - said that this would be unnecessary and costly.