Auckland Fuel Crisis Day 8: Costs unknown as pipe repairs remain on track

As the Auckland fuel crisis heads into its eighth day, restoring fuel supply to full capacity is still “days if not weeks away,” as Refining NZ continues to work to fix a rupture in the pipe from Marsden point to Wiri.

Air New Zealand yesterday eased restrictions and as at 9am today has only four flights cancelled. At Z Energy, seven Auckland outlets remain without 95 Octane.

Industry and government yesterday fronted media with a panel including Board of Airlines Representatives NZ executive director Justin Tighe-Umbers, Auckland Airport chief executive Adrian Littlewood, Energy Minister Judith Collins, Ministry of Transport chief executive Peter Mersi, Auckland Council chief operating officer Dean Kimpton and Mobil’s Andrew McNaught, representing the major fuel companies.

None of the representatives has done any costings to date on the impact of the rupture, and they say they are focused on getting jet fuel back into Auckland. Refining NZ was noticeably absent from the press conference but Ms Collins told media the company was based in Whangarei and was busy fixing the pipe.

Mr McNaught says rationing will continue until next Thursday, with airlines working at 30% of their normal fuel usage. Mr McNaught says after September 28 airlines won’t necessarily be able to operate at full capacity but “we will be able to build up our stocks and there will be a ramp up period. I don’t have the exact number of days but we are working closely with stakeholders on it.”

The petrol boss says other supply initiatives such as bringing in fuel using extra tankers and ships were in addition to the demand restrictions on airlines.  

NZ Defence will deploy the HMNZS Endeavour to Marsden Point at 11am today, as well as providing trucks and drivers.  The industry is also for the first time today testing a new jet fuel facility for trucks at the Whangarei truck loading facilities, which could enable limited jet bridging from the refinery. The refinery is still producing fuel and two dedicated coastal shipping vessels are loading at the refinery for distribution at the country's ports.

“The key from our perspective is getting the pipeline fixed. For example, an A380 can bring in 250,000 litres of fuel and a tanker 35,000 litres. They contribute but the key is getting the pipe back,” he told media.  

In its latest update Refining NZ says it remains on track to deliver jet fuel through the pipeline to Wiri between midday Sunday and midday Tuesday September 26. After that, it will take another 30 hours before the fuel is ready for use at the airport.

Yesterday Ms Collins reiterated that a full review of what happened will be held but would not drawn on Refining NZ’s confirmation that a digger had caused the rupture.

“Let’s just wait until after the issue has been resolved. You need to have all the facts and I’m just really focused on the situation at hand.

“The refinery is owned by some significant people and they have responded to the maintenance of their own assets and there will be a number of reviews and investigations and without sounding dramatic I think it will be quite thorough.”

She indicated her preference was to look at more fuel storage around the Auckland rather than a second pipe but says “that’s just an idea from a practical point of view.”