Z Energy has entered into a partnership with BP. PHOTO/FILE
Z Energy has entered into a partnership with BP. PHOTO/FILE
Z Energy will defer $50 million of capital expenditure on new storage facilities at Tauranga and Lyttelton.
The New Zealand company has cut a deal with BP and the operators of the Marsden Point oil refinery in Whangarei to coordinate the quality of crude oil the refinery processes.
While thecountry's two smaller players, Mobil and Chevron, aren't part of the arrangement, the Z and BP tie-up allows "more efficient use of Refining NZ and reduces Z's procurement costs without committing capital", said Z's chief executive Mike Bennetts.
"Z has been investigating spending up to $50 million on building larger import terminals at Mount Maunganui and Lyttelton to lower the costs of refined fuel imports," Mr Bennetts added.
"While the consents for these new import terminals remain in place and represent a valuable option for Z, being able to secure cost reductions through more efficient operation of Refining NZ removes the need to commit that $50 million of capital," he said.
