Read NZRC Point Forward Opening 2 July 2010 text version

T h e N ew Z ea la n d R E F IN IN G C O M P A N Y

L T D

Media Release

Friday 16 July 2010

Refinery expansion means NZ more self reliant

New Zealand has become more self reliant for fuel products thanks to a multi million dollar expansion of the Marsden Point refinery, officially opened today by Whangarei MP, the Hon. Phil Heatley. The $190 million Point Forward expansion by the New Zealand Refining Company (NZRC) has taken nearly five years to complete and increased refinery capacity by 15 percent to around 135,000 barrels per day. The expansion means that diesel, petrol and jet fuel produced by the company now accounts for 80 percent of all fuel products used in New Zealand. Commenting, NZRC Chief Executive, Ken Rivers said Point Forward has been a significant investment for the company that will improve the reliability of New Zealand's transport fuel supply. "Marsden Point is a world-class refinery and the products we make are critical to the national quality of life as well as sustaining and growing the economy. Demand for high quality fuel products will continue to grow over the next 20 to 30 years and this expansion means we're well placed to meet that demand. "Point Forward is a long term investment that will benefit all New Zealanders," he said. Mr Rivers acknowledged that throughout the expansion NZRC had to contend with a difficult business environment. "For the last 18 months we've been swimming against the prevailing currents in refining which has seen demand for oil products drop away and refining margins plummet. We've kept on with on with Point Forward and where our competitors have closed or mothballed their refineries, NZRC has continued to produce. The major element of Point Forward involved "de-bottlenecking" the Crude Distillation Unit One (CDU1), increasing capacity by 40 percent to allow around 10 million barrels per year of additional crude intake. A raft of downstream modifications including heat exchangers, bigger vessels, furnaces pumps and pipe work were required to cope with the greater throughput. A major benefit has been the elimination of imported residue as supplementary feedstock for the 4500 tonnes-per day hydrocracker unit. Said Rivers: "To have finished such a complex project on time and just three days later to be on spec with all products says a lot about the calibre of everyone involved and their commitment to our vision of safety.

"Point Forward is a major achievement of which we can all be proud: -it's helped raise local skill levels and made our vision of fuelling New Zealand's future real for customers, shareholders, employees, contractors and the community in which we operate." Ends Notes to editors The New Zealand Refining Company Limited (NZRC). Operates New Zealand's only oil refinery at Marsden Point near Whangarei. The refinery is the nation's leading supplier of refined petroleum products. Four companies ­ BP, Chevron, Mobil and Aotea Energy Limited are significant shareholders and customers. NZRC is listed on the New Zealand Stock Exchange. The Point Forward Project. Point Forward was an international project, but with a Kiwi flavour to its execution: engineering was by Worley Parsons in Los Angeles (USA), Beijing (China) and New Plymouth (New Zealand); materials and equipment were purchased from across the world, including New Zealand; constructions crews were predominantly local. An average of 250 people were employed on the project at any one time. Over the life of the project 850 people from across the Northland region were employed on Point Forward. Point Forward began in 2005. Construction started in January 2008 and utilized 500 tonnes of steel; 20 Km of pipe; 46 Km of cabling; over 2000 cubic metres of concrete for foundations and paving; 360 tonnes of scaffolding. In all, 1.4 million man hours were worked on the expansion with 900,000 being construction hours within the live plant. Point Forward NZRC has invested $190 million in the Point Forward expansion with $90 million of that investment being spent on materials and services provided by New Zealand companies. Refinery capacity has increased by around 15 percent, from 106,500 to 135,000 barrels per day (37 million barrels to around 43 million barrels per year). Point Forward follows two previous major expansions: - in the mid 80s a $1.8 billion revamp added a hydrocracker unit and the Refinery Auckland pipeline; Future Fuels in 2005 allowed NZRC to desulphurize diesel and remove benzene from petrol. For more information: Greg McNeill NZRC Communications Manager P: 09 4328311 x 8782; M:021 873 623; E: [email protected]

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NZRC Point Forward Opening 2 July 2010

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NZRC Point Forward Opening 2 July 2010