Marsden Point Oil Refinery

Marsden Point Oil Refinery is a 96,000 BPD refinery positioned at Marsden Point, Whangarei, Northland, New Zealand. It’s the only oil refinery in New Zealand, and is operated by Refining NZ[1]

History[edit]

Increasing demand for petrol and petroleum associated products led the Nash Labour authorities to begin investigating the potential of constructing an oil refinery. The location at Marsden Level was chosen for the oil refinery as a consequence of its location subsequent to a deep water port, low threat of earthquakes, expanses of flat land and closeness to the inhabitants centres of the North Island.[1]

Construction of the refinery started in 1962. A consortium of the new Zealand Authorities contributed the preliminary NZ拢10 million funds of the refinery. It was formally opened on 30 Might 1964.[1]

In 1973, the federal government authorised a NZ$160 million growth of the refinery, involving the addition of a fluid catalytic cracker. Later that year, the primary international oil shock, sparked by the Yom Kippur Warfare, raised crude oil costs from US$3 to around US$20 a barrel – nevertheless, New Zealand retained cheap security of supply.[1]

Suppose Big[edit]

A second international oil shock in 1979, this time due to the Iranian revolution, vastly increased the worth of oil again. This proved to be a catalyst for additional expansion of the refinery, under the Muldoon Nationwide Governments Assume Large power tasks. The estimated cost of enlargement was $320 million, with a hydrocracker now thought-about relatively than the deliberate catalytic cracker.[1]

In 1981, the expansion started and the federal government approving a 170 kilometres (110 mi) pipeline to Wiri, south Auckland. A workforce of 5,000 worked on the expansion, which was by now anticipated to cost $1.55 billion. Strikes through the project led to the introduction of the Refinery Enlargement Initiatives Dispute Act by the Muldoon government. An inquiry into the strikes and the governments’ reactions to them adopted. In 1985, the refinery shut down for five months for upkeep work on the old refinery. The undertaking was completed in 1986, two years behind schedule and at a final cost of $1.Eighty four billion.[1] During this time, the price of oil fell to $8 US per barrel and the refinery was mothballed. It was cheaper to import refined petroleum than it was to course of it at Marsden Level (The refinery was named after Earnest Marsden, Prof of Physics at Victoria Univ, Wellington).

Reform and privatisation[edit]

Following the election of the reformist Fourth Labour Authorities in 1984, the Petroleum Sector Reform Act was introduced. This Act deregulated the petroleum trade, with 1,500 staff expected to lose their jobs.[1] The Refinery assets were transferred by the federal government to the brand new Zealand Refining Company Limited, a consortium of the five major petrol retailers. The federal government injected $80 million to enable the corporate to adapt to the brand new atmosphere. A significant efficiency drive was launched to cut working prices.

Manufacturing[edit]

The refinery makes use of a medium-sour blend of crude oil, almost all of which is imported. Most crude oil produced in New Zealand is light-candy and is exported to refineries in Australia.