Refining NZ has confirmed that the Te Mahi Hou project which was due to ‘go live’ in late December 2015 has made excellent progress in recent months, and is now expected to complete early to mid-November.
The $365 million project which began in April 2012 replaces the aging petrol manufacturing unit with a modern CCR (continuous catalytic regeneration) unit at the Company’s Marsden Point refinery.
Refining NZ CEO Sjoerd Post said the credit for the expected early delivery rests with the project team continually delivering to world-class standards.
“Te Mahi Hou is a significant undertaking for Refining NZ. Its success to date is down to a highly professional team who’ve leveraged their major project know-how from recent expansions, to co-ordinate engineering design across three separate locations, secure critical components from across the globe and “package” them at Marsden Point through excellent project management
“While there’s plenty to be done to finish construction, as well as commission and integrate Te Mahi Hou into the refinery and the fuels supply chain, the team remains on budget and continues to pave the way for the safe construction and early delivery of the project.
Post said that the Te Mahi Hou is expected to provide a number of key benefits for the Company, shareholders and New Zealand.
“Based on the current low crude price environment the project is expected to deliver a structural uplift in refining margins of about USD 0.90-0.95 per barrel, lift processing volumes by around three million barrels, and operating cash flows by around $50 million per annum. The project will also increase the refinery’s share of the country’s petrol demand from around 55% to 65%,” he said.