Client: Ministry of Business, Innovation & Employment

Envisory reviewed the likely impact on New Zealand’s fuel supply from a long term disruption to RAP (the Refinery to Auckland pipeline) or the Wiri Oil Terminal in Auckland.

The RAP pipeline transports about a third of New Zealand’s total fuel demand from the refinery at Marsden Point, near Whangarei to the Wiri Terminal, including the supply of all the jet fuel used at Auckland Airport.

The review included an investigation of potential fuel contingency measures and mitigation options that could be implemented in the event of a long term disruption, and estimated the likely cost and benefit each would provide.

The most significant event that would impact New Zealand’s fuel supply would be a major disruption to the Wiri Terminal, given the time required to undertake repairs at the terminal. Any repairs to the RAP would likely be much quicker.

The most effective contingencies are those that allow more efficient use of the current supply systems used by oil companies. Fuel could be supplied from other terminals although there are constraints on trucking capacity and driver availability that would need to be addressed.

For the supply of jet fuel, the most cost effective option would be for the RAP to be directly connected to the Airport terminal. This option would require some forward planning including design and construction work to ensure this contingency could be implemented in a reasonable time frame, in the event of a disruption.

This report was released by the Ministry of Economic Development (now Ministry of Business, Innovation & Employment) in October 2011, and has been the foundation for work on contingency planning by the Ministry since then.

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Envisory Limited provides strategic advice and consultancy services to the energy sector in New Zealand, Australia and the Pacific Islands. Our expertise covers energy security, petroleum fuels procurement, and services to the energy sector with a focus on oil and gas.