Category: Uncategorized

Three of New Zealand’s maritime unions say fuel companies Z, Mobil and BP have let New Zealand down after off-spec jet fuel threatens to disrupt pre-Christmas flights.

The three unions led the Save Our Tankers campaign earlier this year to keep the now-closed Marsden Point refinery operating, with local deliveries of fuel provided by New Zealand flagged coastal tankers.

Airlines have been advised this week they may be subject to fuel rationing over December after a bad batch of product was imported.

The Maritime Union of New Zealand representing seafarers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers, today spoke out on the situation.

Maritime Union of New Zealand National Secretary Craig Harrison says the new situation is a result of letting fuel security be determined by the self-interest of overseas corporates.

“The companies, in particular Z Energy, wanted to move to this new system because it was more profitable for them, not because it provided fuel security for New Zealand.”

Mr Harrison says the fuel companies need to front up to the public and explain themselves.

He says it has only taken a few months for the wheels to come off the new import system, at the worst possible time for holiday travel and as New Zealand rebuilds its tourism industry. 

Mr Harrison says if New Zealand still had its own refinery and tankers, then it would have the ability to reprocess off spec fuel locally, cushioning the travelling public from supply shocks.

He says New Zealand is currently dependent on new refined fuel supplies arriving from refineries in the Northern Hemisphere.

The New Zealand Merchant Service Guild says the government was misled by forceful assurances from Z Energy and other companies that the new model would safeguard against fuel supply disruptions.  

New Zealand Merchant Service Guild Vice President, Captain Iain MacLeod, says unions warned of this exact scenario prior to the Government decision to endorse the new supply model. 

Anecdotal evidence from industry sources suggests this is now the fifth occasion substandard fuel has been imported to New Zealand under the new model, says Captain MacLeod. 

There was a similar aviation fuel disruption in 2017 when a fuel pipe between Marsden and Auckland was ruptured. New Zealand coastal tankers were able to be part of the response at that time.

Two New Zealand crewed and flagged coastal tankers were taken out of service earlier in 2022 after oil companies shut down Marsden Point refinery and moved to a direct import model.

Mr Harrison says there was still a need for refining capability in New Zealand and a fleet of New Zealand coastal tankers to provide dedicated local service and redundancy in case of emergency situations.

He says the world is experiencing volatile economic conditions and energy security threats, and New Zealand needs to build more resilience into the system.

Maritime professionals say there is potential for serious quality issues with New Zealand’s fuel supply if New Zealand’s two coastal tankers are removed from service.

Following the announced closure of the Marsden Point oil refinery, individual petrol companies are planning to import fuel directly to New Zealand ports on overseas tankers.

Merchant Service Guild National Vice President Captain Iain MacLeod says there are concerns about the volatile nature of refined fuel which means deliveries can be “off spec” and do not meet local standards for use.

“In November 2021, an import cargo of jet fuel arrived in Wellington and was found off spec and rejected. A cargo from Marsden Point was diverted and the inventory was replaced with local cargo. During that time Wellington was low in jet fuel.”

Captain MacLeod says New Zealand coastal tankers were available to assist in a prompt way with this event, but if New Zealand was dependent on overseas tankers, this would no longer be the case.

He says fuel companies have to explain how they will cope with an off spec cargo without the refinery and New Zealand coastal tankers.
“Regional ports do not have the storage capacity to hold an off spec cargo until a solution is resolved.”

Captain MacLeod says it is even more likely that refined fuel coming from overseas refineries in the Northern Hemisphere will degrade.

“The lighter components in volatile products including jet fuel evaporate at a higher rate in warmer temperatures, and a journey of up to two weeks across the Equator would increase this risk.”

Captain MacLeod says the maritime industry is urging the Government to intervene and ensure New Zealand coastal tankers are kept in service to protect national fuel security.

The campaign for fuel security Save Our Tankers is comprised of the Maritime Union of New Zealand representing seafarers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers.

The campaign for fuel security met with the Deputy Prime Minister Hon. Grant Robertson in Wellington yesterday to discuss the imminent threat to the future of New Zealand coastal fuel tankers.

Ship’s officers, marine engineers and seafarers were represented at the meeting, with industry professionals stating their concerns about unprecedented changes to New Zealand’s 120 year established fuel supply chain.

Following the announced closure of the Marsden Point oil refinery, individual petrol companies are planning to import fuel directly to New Zealand ports on overseas tankers.

Maritime Union of New Zealand National Secretary Craig Harrison says the proposed deadline to take New Zealand coastal tankers out of service on 1 April is alarming the maritime and wider transport industry.

“There are multiple holes in the petrol companies plans, which will expose New Zealand to unacceptable risks in our fuel supply chain.”

Mr Harrison says the campaign has asked the Government to act immediately to preserve the role of New Zealand coastal tankers until a thorough risk analysis has been completed with involvement of the industry.

“New Zealand tankers and their crews being removed from our coast will leave New Zealand exposed to potential supply chain issues and fuel shortages.”

He says maintaining Marsden Point as a distribution hub for New Zealand tankers to collect fuel from is a clear and straightforward option with no cost to the taxpayer.

The campaign for fuel security Save Our Tankers is comprised of the Maritime Union of New Zealand representing seafarers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers.

A new campaign had been set up to raise awareness of the situation including the website fuelsecurity.nz