Kiwi fuel stocks up to the job

We hold quite a lot of stock — more than enough to meet New Zealand’s needs. Mike Bennetts, Z Energy

Z Energy chief executive Mike Bennetts says New Zealand’s shift to importing all its fuel as refined product will improve the country’s fuel security.

In an opinion piece carried by the Herald, special counsel for Buddle Findlay Bassam Maghzal made a case for doubling the country’s minimum fuel stockholding.

“Russia’s invasion of Ukraine and its impact on fuel prices has highlighted New Zealand’s everpresent vulnerability to global supply chain disruptions,” he wrote. “The Government should be giving serious consideration to building additional fuel storage infrastructure.”

In an interview with the Herald, Bennetts said New Zealand held about 25 days’ worth of fuel at the moment.

As of April 1, Channel Infrastructure — in which Z has a stake — began its new life as a fuel importer, having previously been an oil refiner under the name Refining NZ.

In this new post-refining world, says Bennetts, “we are very happy that the current level of 25 days is about right”.

As well, he points out, “we have about 18 days’ stock within seven days’ sailing of New Zealand, so it has already left the refinery somewhere in the world and is well on its way to New Zealand, and within seven days that ship would be at a port and unloading”. Bennetts says that even when the Marsden Point refinery was running, about a third of what was sold was imported.

Putting together stocks in the country and shipments within seven days away, those two together means we had about 40 days of stock.

“That’s actually higher than Australia and higher than we would typically expect from the refinery.

“We hold quite a lot of stock — more than enough to meet New Zealand’s needs.”