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Home / Business / Companies / Airlines

Jet fuel debacle: Airline rep says overseas partners scratching heads at NZ’s lack of resilience

NZ Herald
7 Dec, 2022 11:21 PM3 mins to read

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Refining at Marsden Point ended in March. Photo / Tania Whyte

Refining at Marsden Point ended in March. Photo / Tania Whyte

Airlines say the jet fuel debacle is bizarre and shows New Zealand’s fuel infrastructure needs to be seriously examined.

The Herald this week revealed an “off-specification” load of about 25 million litres forced fuel suppliers to activate rationing as a precaution.

Board of Air Line Representatives (Barnz) executive director Cath O’Brien told Newstalk ZB airlines were struggling to get answers about possible rationing at Auckland Airport.

“Airlines are still working through the issue,” O’Brien told Newstalk ZB this morning.

“I think what’s fair to say is our domestic carriers will find it easier to pick up fuel from around the county and potentially Australia to get through.

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“Long-haul carriers will face more of a challenge.”

O’Brien said Barnz members had been asking her a lot asking about fuel resilience.

“To be fair, they have questioned New Zealand’s position and noted there are very few if any other countries in the world that this is the case at. So certainly I have communicated that to officials.

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“We’ve got more supply coming on the 12th of December which is excellent.”

But O’Brien said that would not fill the gap caused by the poor supply batch.

Marsden Point Oil Refinery ceased refining earlier this year. Photo / Tania Whyte
Marsden Point Oil Refinery ceased refining earlier this year. Photo / Tania Whyte

“What we need is more resilience, right? If we are going to get some more storage onshore, that will help.”

She said the International Air Transport Association (IATA) contacted her and suggested New Zealand might want to implement BCP (business continuity plan) guidance on the issue.

Earlier, Airline Pilots Association president Andrew Ridling, a Dreamliner captain who flies international routes, said he had not encountered fuel issues in other countries.

“We’ve never seen anything like this apart from New Zealand,” he told the Herald. “I think we do have an infrastructure issue that needs to be looked at.”

Z Energy has apologised to its airline customers and any passengers that may be affected after fuel rationing was imposed out of Auckland Airport.

Z is part of a joint venture of fuel companies – including BP and Mobil - that own and operate the Auckland jet fuel supply chain from what is now just a terminal at the former Marsden Point refinery.

Refining at the Northland site ended in March.

The refinery’s shareholders voted in August 2021 to ditch refining.

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A glut of fuel supplies globally, the impact of Covid-19 on refinery output, pipeline fees and plummeting demand for fuel were cited as reasons for the change.

An estimated 240 jobs were lost at the site.

Hundreds of contracting jobs and services from associated businesses were also cut.

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