Marsden Point Oil Refinery
Encyclopedia
Marsden Point Oil Refinery is located at Marsden Point
, Whangarei
, Northland, New Zealand
. It is the only oil refinery
in New Zealand, and is operated by Refining NZ.
to begin investigating the possibility of constructing an oil refinery. The site at Marsden Point was chosen for the oil refinery due to its location next to a deep water port, low risk of earthquakes, expanses of flat land and closeness to the population centres of the North Island
.
Construction of the refinery began in 1962. A consortium of the New Zealand Government contributed the initial NZ£
10 million budget of the refinery. It was officially opened on 30 May 1964.
In 1973, the government approved a NZ$
160 million expansion of the refinery, involving the addition of a fluid catalytic cracker. Later that year, the first global oil shock
, sparked by the Yom Kippur War
, raised crude oil prices from US$3 to around US$20 a barrel - however, New Zealand retained reasonable security of supply.
, greatly increased the price of oil again. This proved to be a catalyst for further expansion of the Refinery, under the Muldoon National Government
s Think Big
energy projects. The estimated cost of expansion was $320 million, with a hydrocracker now considered rather than the planned catalytic cracker.
In 1981, the expansion began and the government approving a 170km pipeline to Wiri
, south Auckland
. A workforce of 5,000 worked on the expansion, which was by now expected to cost $1.55 billion. Strikes during the project led to the introduction of the Refinery Expansion Projects Dispute Act by the Muldoon government. An inquiry into the strikes and the governments' reactions to them followed. In 1985 the refinery shut down for five months for maintenance work on the old refinery. The project was completed in 1986, two years behind schedule and at a final cost of $1.84 billion.
in 1984, the Petroleum Sector Reform Act was introduced. This Act deregulated the petroleum industry, with 1,500 workers expected to lose their jobs. The Refinery assets were transferred by the Government to the New Zealand Refining Company Limited, a consortium of the five major petrol retailers. The Government injected $80 million to enable the company to adapt to the new environment. A major efficiency drive was launched to cut operating costs.
Marsden Point
Marsden Point is a head of the Whangarei Harbour, near Whangarei, New Zealand, lying close to the northern tip of Bream Bay. It is also a major industrial area, containing Marsden Point Oil Refinery, the country's only such facility, and two large defunct power plant stations...
, Whangarei
Whangarei
Whangarei, pronounced , is the northernmost city in New Zealand and the regional capital of Northland Region. Although commonly classified as a city, it is officially part of the Whangarei District, administered by the Whangarei District Council a local body created in 1989 to administer both the...
, Northland, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. It is the only oil refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
in New Zealand, and is operated by Refining NZ.
History
Increasing demand for petrol and petroleum related products led the Nash Labour governmentSecond Labour Government of New Zealand
The Second Labour Government of New Zealand was the government of New Zealand from 1957 to 1960. It was most notable for raising taxes on alcohol, cigarettes and petrol, a move which was probably responsible for the government lasting for only one term....
to begin investigating the possibility of constructing an oil refinery. The site at Marsden Point was chosen for the oil refinery due to its location next to a deep water port, low risk of earthquakes, expanses of flat land and closeness to the population centres of the North Island
North Island
The North Island is one of the two main islands of New Zealand, separated from the much less populous South Island by Cook Strait. The island is in area, making it the world's 14th-largest island...
.
Construction of the refinery began in 1962. A consortium of the New Zealand Government contributed the initial NZ£
New Zealand pound
The pound was the currency of New Zealand between 1840 and 1967. Like the British pound, it was subdivided into 20 shillings each of 12 pence. As a result of the great depression of the early 1930s, the New Zealand agricultural export market to the UK was badly affected...
10 million budget of the refinery. It was officially opened on 30 May 1964.
In 1973, the government approved a NZ$
New Zealand dollar
The New Zealand dollar is the currency of New Zealand. It also circulates in the Cook Islands , Niue, Tokelau, and the Pitcairn Islands. It is divided into 100 cents....
160 million expansion of the refinery, involving the addition of a fluid catalytic cracker. Later that year, the first global oil shock
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
, sparked by the Yom Kippur War
Yom Kippur War
The Yom Kippur War, Ramadan War or October War , also known as the 1973 Arab-Israeli War and the Fourth Arab-Israeli War, was fought from October 6 to 25, 1973, between Israel and a coalition of Arab states led by Egypt and Syria...
, raised crude oil prices from US$3 to around US$20 a barrel - however, New Zealand retained reasonable security of supply.
Think Big
A second global oil shock in 1979, this time due to the Iranian revolutionIranian Revolution
The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...
, greatly increased the price of oil again. This proved to be a catalyst for further expansion of the Refinery, under the Muldoon National Government
Third National Government of New Zealand
The Third National Government of New Zealand was the government of New Zealand from 1975 to 1984. It was an economically and socially conservative government, which aimed to preserve the Keynesian economic system established by the First Labour government while also being socially conservative...
s Think Big
Think Big
The New Zealand Prime Minister Robert Muldoon and his New Zealand National Party government in the early 1980s sponsored Think Big as an interventionist state economic strategy. The Think Big schemes saw the government borrow heavily overseas, running up a large external deficit, and using the...
energy projects. The estimated cost of expansion was $320 million, with a hydrocracker now considered rather than the planned catalytic cracker.
In 1981, the expansion began and the government approving a 170km pipeline to Wiri
Wiri
Wiri is a mostly industrial-commercial focused suburb in Manukau City, located to the southwest of the city.As of 2009, Ports of Auckland is building an inland port / rail siding in Wiri, to connect road freight to the port facilities on the Waitemata Harbour further north...
, south Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
. A workforce of 5,000 worked on the expansion, which was by now expected to cost $1.55 billion. Strikes during the project led to the introduction of the Refinery Expansion Projects Dispute Act by the Muldoon government. An inquiry into the strikes and the governments' reactions to them followed. In 1985 the refinery shut down for five months for maintenance work on the old refinery. The project was completed in 1986, two years behind schedule and at a final cost of $1.84 billion.
Reform and privatisation
Following the election of the reformist Fourth Labour GovernmentFourth Labour Government of New Zealand
The Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...
in 1984, the Petroleum Sector Reform Act was introduced. This Act deregulated the petroleum industry, with 1,500 workers expected to lose their jobs. The Refinery assets were transferred by the Government to the New Zealand Refining Company Limited, a consortium of the five major petrol retailers. The Government injected $80 million to enable the company to adapt to the new environment. A major efficiency drive was launched to cut operating costs.
External links
- http://www.refiningnz.com The New Zealand Refining Company Ltd T/A Refining NZ
- Marsden Point (from Te Ara Encyclopedia of New ZealandTe Ara Encyclopedia of New ZealandTe Ara: The Encyclopedia of New Zealand is an online encyclopedia created by the Ministry for Culture and Heritage of the New Zealand Government. The project was established in 2002 and the website launched in 2005...
)