Two companies involved in the 2017 oil pipeline outage near the Marsden oil refinery have welcomed the opportunity of participating in the Government-initiated inquiry.
Owner of the oil refinery, Refining New Zealand Ltd (NZX: NZR) said welcomed the inquiry that may lead to greater resilience of fuel supply into Auckland.
“The pipeline is a vital piece of infrastructure for New Zealand. It is good to see the scope and terms of reference for this Inquiry confirmed, and we will continue to work with the Government and assist the inquiry in every way,” said Refining NZ chief executive Mike Fuge.
Refining NZ provided the Government with expert reports on the outage and kept it closely informed on pipeline monitoring and ongoing work by the refinery.
The Government said the inquiry may consider taking evidence from December this year.
Z Energy Ltd (NZX & ASX: ZEL) announced it also welcomed the inquiry with its chief executive Mike Bennetts saying New Zealand is isolated from major fuel markets and “is a long skinny country to supply with low population density.”
“While this infrastructure has served NZ well for decades and has minimised supply chain costs, Z has expressed concerns about the lack of resilience in the fuel supply chain, particularly with respect to Auckland supply.”