Marsden Level Oil Refinery is a 96,000 BPD refinery situated at Marsden Level, Whangarei, Northland, New Zealand. It is the one oil refinery in New Zealand, and is operated by Refining NZ[1]
Historical past[edit]
Rising demand for petrol and petroleum related merchandise led the Nash Labour government to begin investigating the potential for constructing an oil refinery. The location at Marsden Level was chosen for the oil refinery due to its location next to a deep water port, low threat of earthquakes, expanses of flat land and closeness to the inhabitants centres of the North Island.[1]
Development of the refinery started in 1962. A consortium of the brand new Zealand Authorities contributed the initial NZ拢10 million budget of the refinery. It was officially opened on 30 May 1964.[1]
In 1973, the federal government authorised a NZ$160 million growth of the refinery, involving the addition of a fluid catalytic cracker. Later that year, the primary international oil shock, sparked by the Yom Kippur Battle, raised crude oil prices from US$three to round US$20 a barrel – however, New Zealand retained affordable security of provide.[1]
Think Big[edit]
A second global oil shock in 1979, this time because of the Iranian revolution, vastly elevated the worth of oil once more. This proved to be a catalyst for additional growth of the refinery, beneath the Muldoon Nationwide Governments Think Big energy initiatives. The estimated price of growth was $320 million, with a hydrocracker now thought-about rather than the deliberate catalytic cracker.[1]
In 1981, the growth started and the government approving a 170 kilometres (one hundred ten mi) pipeline to Wiri, south Auckland. A workforce of 5,000 labored on the enlargement, which was by now expected to value $1.55 billion. Strikes throughout the challenge led to the introduction of the Refinery Enlargement Initiatives Dispute Act by the Muldoon authorities. 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 venture was accomplished in 1986, two years behind schedule and at a remaining price of $1.Eighty four billion.[1] Throughout this time, the value of oil fell to $eight US per barrel and the refinery was mothballed. It was cheaper to import refined petroleum than it was to process it at Marsden Level (The refinery was named after Earnest Marsden, Prof of Physics at Victoria Univ, Wellington).
Reform and privatisation[edit]
Following the election of the reformist Fourth Labour Government in 1984, the Petroleum Sector Reform Act was introduced. This Act deregulated the petroleum business, with 1,500 staff expected to lose their jobs.[1] The Refinery assets have been transferred by the government to the brand new Zealand Refining Company Limited, a consortium of the 5 major petrol retailers. The government injected $80 million to allow the company to adapt to the new environment. A significant efficiency drive was launched to cut operating costs.
Production[edit]
The refinery makes use of a medium-sour blend of crude oil, practically all of which is imported. Most crude oil produced in New Zealand is light-candy and is exported to refineries in Australia.
