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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news