Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Record gas use signals boost for Refinery

Record gas use signals boost for Refinery


A record-breaking consumption of natural gas at the Marsden Point refinery is driving product yields and lifting refining margins.

Figures compiled by Refining NZ show that in the last two months the Northland based refiner used 570 TeraJoules (TJ) of natural gas (over 12,000 tonnes), an increase of 10 percent over the corresponding period a year ago and the highest ever use of gas in any two month operating period.

Refining NZ had forecast that an increased use of natural gas across the year would improve its Gross Refiners Margin (GRM) by USD 0.11 per barrel. The increased use in the May/ June period is worth an additional USD 0.12 per barrel to the refiner.

Chief Executive Officer, Sjoerd Post described the gas “statistics” as another step forward in a series of initiatives expected to add USD 0.66 per barrel to Refining NZ’s Gross Refining Margin.

“We are yet to project the impact of this increased usage across the remainder of the year, but the strength of the May/June figures indicate that we are well on the way to achieving the forecast uplift in our margin of USD 0.11 per barrel.

“We’ve been pushing hard to increase our supply of natural gas, which is critical to the mix of fuels we use in the refining process. With a better supply of cheaper, cleaner natural gas we can free-up fuels from processing to be sold as product - part of our strategy to lift revenue by producing more of the high value fuel products – and at the same time improve our CO2 profile.”

Post said there is a seasonal element to the increase, with supply improved by the fall-off in dairy processing over winter, but added that the increase also pointed to changing fundamentals in the gas market.

“Refining NZ has been working with its gas suppliers, other major gas users and the sector to improve access and allocation of natural gas on the northern pipeline.”

“In addition, we understand that re-negotiation of power-station gas supply contracts has improved available capacity on the pipeline.

“This is extremely encouraging for the refinery because it adds impetus to our efforts to optimise production and “opens the door” to further discussions with industry around what other steps might be taken to boost our supply of natural gas“, he said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news