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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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