It is unlikely any new Shell-branded petrol stations will be built within suburban Tauranga.
The cost of land in the city makes it commercially unviable, says Greenstone Energy retail manager Mark Forsyth.
He was speaking last week during a check on progress of the company's new Bethlehem service station due to open
at the end of next month.
Greenstone, which is owned by the New Zealand Superannuation Fund and Infratil Ltd, earlier this year bought the New Zealand assets of Shell Oil, including its stake in the Marsden Point oil refinery, bulk fuel storage terminals round the country, commercial contracts and retail outlets.
The Bethlehem service station, which was already in the planning stages at the time of the purchase, will be the first new retail outlet opened by Greenstone. Others are under construction on Auckland's North Shore and at Waiuku.
Mark was commenting on the fact that since the closure of former Shell stations at Gate Pa, Greerton and the Papamoa main highway, the company had no representation in the southern part of the city and, in fact, nothing on the State Highway network between Matamata and Te Puke.
"We are waiting to see what decisions are made about realignment of SH29 at Tauriko, and implications of the new Eastern Arterial toll road," he says. "Results of that will affect the potential location of any future new retail outlets on the Waikato/Eastern Bay route - perhaps at Tauriko or Papamoa.
It would have been good to have another outlet on a Cameron Road site in Tauranga South. But there is no suitable land available at a realistic price.
"This Bethlehem site is leased and the station itself represents an investment of more than $3 million. The cost of developing a new site closer in to the city would be uneconomic today."
The Bethlehem outlet has the latest design of double-skinned underground storage tanks that include special sensors to detect any leaks. Fuel volumes are electronically monitored, ending old fashion dipstick checks.
The tanks can be used for any type of fuel. However, Greenstone has no plans at this stage to offer the new E85 petrol/ethanol fuel blend to motorists at Bethlehem or elsewhere in the country.
It sees more opportunities at this stage in the commercial biodiesel market.
"The first problem is lack of domestically produced enthanol," says Mark. "The product would have to be imported, which doesn't make much sense to us. And while some Australian-made cars are now being manufactured to run on E85 fuel because of regulations there, the great bulk of this country's vehicle fleet comes from Japan and it will be several years before they are ethanol compatible in sufficient numbers.
"We see biodiesel as a much more significant market - mainly for heavy transport and commercial users. Greenstone is already conducting trials with a South Island bus company and some home heating fuel customers."
Company chief executive Mike Bennetts, who was also checking the Bethlehem site, says the fact Greenstone is now in New Zealand ownership means it can react more quickly to local circumstances than was the case when the Shell operation here was a small part of a huge international conglomerate with any significant decisions needing ratification overseas.
The well known Shell emblem and livery for retail outlets was being retained at this stage but he would not discount a possible change at some point in future.
It is unlikely any new Shell-branded petrol stations will be built within suburban Tauranga.
The cost of land in the city makes it commercially unviable, says Greenstone Energy retail manager Mark Forsyth.
He was speaking last week during a check on progress of the company's new Bethlehem service station due to open
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