NZR
01/04/2015 10:13
GENERAL
PRICE SENSITIVE
REL: 1013 HRS The New Zealand Refining Company Limited
GENERAL: NZR: Early delivery expected for Te Mahi Hou
Refining NZ has confirmed that the Te Mahi Hou project which was due to "go
live" late December 2015 has made excellent progress in recent months, and is
now expected to complete early to mid-November.
The $365 million project which began in April 2012 replaces the aging petrol
manufacturing unit with a modern CCR (continuous catalytic regeneration) unit
at the Company's Marsden Point refinery.
Refining NZ CEO, Sjoerd Post, said the credit for the expected early delivery
rests with the project team continually delivering to world-class standards.
"Te Mahi Hou is a significant undertaking for Refining NZ. Its success to
date is down to a highly professional team who've leveraged their major
project know-how from recent expansions, to co-ordinate engineering design
across three separate locations, secure critical components from across the
globe and "package" them at Marsden Point through excellent project
management and construction.
"While there's plenty to be done to finish construction, as well as
commission and integrate Te Mahi Hou into the refinery and the fuels supply
chain, the team remains on budget and continues to pave the way for the safe
construction and early delivery of the project.
Post said that the Te Mahi Hou is expected to provide a number of key
benefits for the Company, shareholders and New Zealand.
"Based on the current low crude price environment the project is expected to
deliver a structural uplift in refining margins of about USD 0.90-0.95 per
barrel, lift processing volumes by around three million barrels, and
operating cash flows by around $50 million per annum. The project will also
increase the refinery's share of the country's petrol demand from around 55%
to 65%," he said.
ENDS
Note: The current premises for the Te Mahi Hou project are outlined in the
February 2015 analysts briefing pack available at www.refiningnz.com
For further information:
Greg McNeill, Communications and External Affairs Manager,
T: 09 432 8311; M: 021 873 623; E: [email protected]
End CA:00262592 For:NZR Type:GENERAL Time:2015-04-01 10:13:59
