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Home / Northern Advocate

Sjoerd Post: Slick operation transformed Marsden

By Sjoerd Post.
Northern Advocate·
14 Mar, 2016 03:50 PM3 mins to read

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Sjoerd Post.

Sjoerd Post.

Thank you Northland: Te Mahi Hou shows just what you can do.

Four years ago when Refining New Zealand decided to upgrade our plant at Marsden Point we knew we were taking on no small mission.

The old platformer equipment, which is used for making petrol, dated back to 1964.

It badly needed upgrading. Changing to a new CCR (Continuous Catalyst Regeneration) plant was a major shift that would cost $365 million.

Indeed, faced with a job on this scale overseas refinery operators typically contract in global specialists.

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But we were confident in the expertise and people we could draw on in Northland.

And with Te Mahi Hou formally launched by the Prime Minister last week I'd like to take this opportunity to thank Northland for a job very well done.

With the new platformer in action the refinery will lift production by two million barrels to around 13 million each year. We will cut CO2 emissions by around 120,000 tonnes annually and get new flexibility to process more light crudes.

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But if the benefits have been substantial so has the talent and commitment we have enjoyed from the Northland engineering community.

At its peak, the project employed around 440 people, most from Northland.

We had 650 contractors, on and off site, making and assembling 6574 tonnes of sophisticated new plant.

In all the team worked 1.75 million man-hours without a single lost time injury. Huge modules were transported to Marsden Pt to support a 76m reactor structure.

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Where big construction projects like this routinely drag on, it was a testament to local smarts and hard work that Te Mahi Hou came in on budget and three weeks ahead of time.

By working with local engineers we benefited from people who not only knew us well but who could bring a deep knowledge of how the refinery works in helping get things done.

Culham engineering in Whangarei, for example, who now rank among the industry's leaders in New Zealand, brought in new world-leading automated welding technology.

They installed it on site and then trained our people how to use it.

It makes great sense to keep those relationships strong. Indeed, a number of highly skilled Northlanders working overseas have seen the project as a welcome opportunity to return home.

For New Zealand's economy the refinery plays an important role. It produces about 50 per cent of the petrol we put in our cars.

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But it also accounts for fully 80per cent of our diesel and 100per cent of our jet fuel.

And we are proud that the refinery, which employs 500 people, and Te Mahi Hou have brought benefits to Northland too.

Independent analysis by North Tec estimates the benefits of project activity at $247 million for Northland and a further $67.5 million for New Zealand.

We believe many benefits will be enduring.

North Tec forecast ongoing income for Northland of $159 million and $223 million for New Zealand annually in sales of locally refined product.

But really this article is about saying thank you.

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Four years ago we started on a major undertaking. We never doubted that New Zealand and Northland expertise could deliver. And in doing so they have done us all proud.

- Sjoerd Post is Chief Executive Officer of Refining New Zealand.

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