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

 


Marsden Point makes margin gains with greater natural use

Marsden Point makes margin gains with greater natural use

By Pattrick Smellie

July 4 (BusinessDesk) - New Zealand's Marsden Point oil refinery is taking advantage of historically low wholesale prices for locally produced natural gas to improve its refining margins as electricity companies, in particular, continue to use far less gas than in the past.

Refining NZ said in a statement it had achieved a 12 US cents per barrel uplift in Gross Refining Margins in May and June, 1 US cent better than planned, and that the company was "well on the way" to achieving its targeted 11 US cents per barrel improvement from the natural gas initiative over the course of the financial year.

Gas was cheapest in winter months when the dairy industry, also a major gas user, was at its seasonal low point for milk processing.

Wholesale gas prices have plummeted in recent years as a combination of weak electricity demand and the commissioning of a string of renewable wind and geothermal energy projects have markedly reduced the use of natural gas and coal to produce electricity.

That trend has already seen Canadian methanol producer Methanex restart and expand its three Taranaki methanol production trains after mothballing them during much of the 2000s, when gas prices were high and shortages were feared.

The gas move is one of four initiatives the refinery is pursuing, targeting a 66 US cents per barrel improvement in gross refining margins, which have been low over the past year, owing to a global glut of refining capacity.

Using more locally produced natural gas to fire its plant allowed the refinery to send less of its own product "up the stack" as fuel for the refining process and "to send those fuels out the door (to market) instead," said Refining NZ spokesman Greg McNeill.

As a result, the refinery had increased gas use by 50 Terajoules to 570TJ's in May and June this year, compared with the same period last year.

The growth in gas use had also been assisted by improved access to the pipeline capacity, which has been a bugbear for would-be new industrial gas users in the upper North Island, with pipeline limitations causing bottlenecks.

"We understand that the renegotiation of power station gas supply contracts has improved available capacity on the pipeline," said Refining NZ chief executive Sjoerd Post.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news