New Zealand's Sole Refinery to Close

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Refining NZ -- the only oil refiner in New Zealand -- has reached an agreement with customer Mobil Oil on key terms for the planned conversion of its 135,000 b/d refinery into an oil import terminal. This follows earlier agreements with two other customers, BP and Z Energy, and paves the way for the conversion (IOD Feb.17'21). Refinery NZ plans a final investment decision for the conversion around the end of September, and the conversion is expected to take place by mid-2022. The company has operated the refinery at Marsden Point since 1964. The plant has converted crude into oil products for a tolling fee from three wholesalers -- BP, Exxon Mobil and local downstream firm Z Energy. Refining margins have slumped as a result of demand destruction caused by Covid-19 and structural oversupply of refined products in the Asia-Pacific region. Refining NZ posted a net loss of NZ$4.9 million (US$3.4 million) for the first half of this year.

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