Otago Daily Times

Ampol says taking over Z improves NZ fuel security

- NICHOLAS POINTON

AUCKLAND: Z Energy’s new owner says New Zealand will have greater fuel security as a result of its takeover.

Australian fuel retailer Ampol dual listed on the local stock exchange yesterday, after finalising its acquisitio­n of Z Energy for close to $2 billion last week.

Ampol chief executive Matt Halliday said local customers would not see many changes on the ground after the takeover, but would benefit from better fuel security.

Critics have warned about the security of fuel supply after the transition of the Marsden Point oil refinery to an importonly terminal, ongoing supply chain disruption­s and the Ukraine war.

Mr Halliday said the combined scale of both companies would strengthen the supply of oil imports because at any point in time it would have more ships on the water.

‘‘Ampol still has a refinery in the group so there’s the connection New Zealand has to a refinery that’s still operating in Brisbane . . . so I think that gives comfort, . . . we have roughly 80 people in our trading and shipping team in Singapore who are very connected to internatio­nal markets and supply chains.’’

Ampol’s debut on the local stock exchanges comes the day after the Government unveiled its first emissions reduction budget.

It included policies to decarbonis­e large parts of the transport sector, such as incentivis­ing the uptake of cleaner vehicles and increased investment in public transport and cycleways.

‘‘I think it’s a really exciting opportunit­y for Ampol and for Z, in terms of the role that we can play to enable a low carbon future for New Zealand and Australia,’’ Mr Halliday said.

The organisati­on’s size meant it could support more electric vehicle and hydrogen fuel stations, plus support developing biofuels.

‘‘We’re energy distributo­rs today; we’ll be distributi­ng different forms of energy in the future but repurposin­g our assets and using our capabiliti­es to deliver for our customers.

As fuel use declined, its profitabil­ity mix would change, ‘‘but I actually see that there’s a big opportunit­y for us to earn attractive returns on our privileged assets and capabiliti­es.’’

He said Z was seeking to sell a 49% stake in service station assets to ‘‘unlock some value’’ but Z wanted to retain ‘‘strategic control of those assets’’. —RNZ

 ?? PHOTO: SUPPLIED ?? Australian fuel retailer Ampol has bought Z Energy.
PHOTO: SUPPLIED Australian fuel retailer Ampol has bought Z Energy.

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