The Board of Airline Representatives (Barnz) said its members were extremely frustrated by the third problem with aviation fuel within the last 12 months.
‘’What we are seeing is fuel suppliers bringing in fuel from all sorts of different places and they haven’t got a good handle on what they’re uplifting,’’ said the association’s executive director Cath O’Brien.
Airlines were looking for a reliable and safe fuel supply.
“As a geographically isolated island nation, New Zealand needs to do all it can to ensure the fuel we receive meets requirements for use on arrival. Airlines should not be put in the position of needing to tanker aviation fuel to be able to operate domestic and international services.”
Air New Zealand said the issue was not affecting its passengers, but it had taken steps to manage the impact.
Flights from Auckland and Christchurch that have landed in Wellington have been carrying extra fuel to ensure fuel is available for all aircraft operating out of Wellington, including those from other operators.
Air NZ chief operational integrity and safety officer David Morgan said: “We are somewhat disappointed that this is now the third event regarding aviation fuel supply in New Zealand over the past 12 months affecting our operation. Fuel suppliers need to explain how this has happened - yet again.”
ExxonMobil and BP supply aviation fuel in Wellington.
In a statement, they said the problem related to a delay with product recertification associated with jet fuel quality identified during an import into the Miramar terminal.
“Fuel suppliers are working to put alternative supply arrangements in place to manage potential impacts and resolve this matter as soon as possible.”
The companies confirmed the 80 per cent allocation to airlines.
“This matter is being addressed with the highest priority and operational updates will continue to be provided until the normal supply of jet fuel to Wellington Airport has been restored,” the companies said.
“We are sorry for any inconvenience this is causing and individual fuel suppliers are keeping airline customers and stakeholders informed.”
The problem comes as Air New Zealand faces disruption because of maintenance issues with its Pratt & Whitney engines on A321s when there is strong demand for flights. Airlines will face further demand for domestic and transtasman travel during the Fifa Women’s World Cup this winter.
O’Brien said carrying extra fuel – up to six tonnes on an A320/21 aircraft – cost airlines more and was bad for the environment.
“Airlines are soaking up the extra cost,” she said.
Previously there have been problems with water in fuel and conductivity issues. While not as disruptive as the problem caused by a bad batch delivered to Marsden Point before Christmas, the latest problem shows how vulnerable the New Zealand fuel system was, said O’Brien.
In December last year Z Energy apologised to its airline customers after an “off-specification” load of around 25 million litres forced it to ration supplies to domestic and international airlines. Some flights had to divert to overseas ports to take on more fuel.
The Government said then it would investigate whether the requirement to hold minimum fuel stocks could be brought forward from a 2024 implementation date.
A report for the Ministry of Business Innovation and Employment from consultants Hale and Twomey in 2020 warned that without refining capacity at Marsden Point, there was no capability to reprocess an off-spec shipment at Marsden Point.
The fuel companies were major shareholders in what was Refining NZ, which voted to cease refining operations last April after low margins hammered profitability. The plunge in demand during Covid-19 lockdowns further hurt the company and the Government baulked at providing any financial support to keep refining going.
Energy and Resources Minister Megan Woods said last year New Zealand’s fuel supply resilience was being improved.
Today, she said issues with jet fuel recertification at Wellington airport shouldn’t impact New Zealanders’ ability to travel around the country.
‘‘Fuel suppliers are working to put alternative supply arrangements in place to manage impacts and resolve this matter as soon as possible.’'
Under plans unveiled last year, fuel importers and wholesalers with bulk storage facilities will have to hold minimum levels of onshore stocks of petrol, jet fuel and diesel. Minimum fuel stockholding levels for them will equate to around 28, 24 and 21 days’ worth of petrol, jet fuel and diesel respectively.
O’Brien said she supported any moves to improve onshore holdings of fuel.
“Barnz supports this work, and advocates for increased fuel holdings in multiple ports – rather than just Auckland. Shipping fuel by road is an increasingly difficult prospect when fuel supplies are impacted in ports beyond Auckland.”
