The Maritime Union says the closure of Marsden Point refinery is sending New Zealand on a “high risk track at a bad time” and is a “giant step backwards” for New Zealand’s energy security.
It says the announcement by Refining NZ that the facility will be replaced by a terminal for only imported fuel is a major shift in New Zealand’s fuel arrangements.
Union national secretary Craig Harrison says Refining NZ chief executive Naomi James needs to provide an “iron clad guarantee” that fuel supply to New Zealand will not be endangered.
Harrison says the implications for fuel security around New Zealand are serious, especially for regional economies and the primary sector.
Outside Auckland, fuel is currently shipped from Marsden Point to ports using New Zealand flagged and crewed vessels. This could be in jeopardy with future supplies possibly delivered to ports by international vessels, he says.
He says recent events have shown that relying on international shipping and supply chains is no longer a safe option, especially for small remote markets like New Zealand.
“Just ask anyone in any provincial port around New Zealand what the reliability of international shipping services has been in the last year – it has been complete chaos.”
Harrison says there are multiple downsides to the closure decision, including the loss of employment and the loss of essential skills as the workforce moves on.
“We need to be looking at the big picture for New Zealand, not what is most profitable for a privately owned corporation.”
Harrison says the fact that Energy Minister Megan Woods took a paper to Cabinet with a proposal for securing the future of the refinery was a clear indication that closure was a risky strategy. It was later reported Woods did not get the support from fellow minister to follow through on her proposal.
Harrison says the Government was giving too much credence to the word of a private corporation with its own agenda and interests.
Energy security and supply chain security were now big global issues and the Government should review the decision and work to keep the refinery in operation, Harrison says.
The continued existence of the refinery would provide essential security for fuel, as crude oil for refining was obtainable for multiple sources, and would also maintain an important domestic skill base and supply network, he says.
