Maritime unions say jet fuel debacle has exposed predicted weakness in system

Three of New Zealand’s maritime unions say fuel companies Z, Mobil and BP have let New Zealand down after off-spec jet fuel threatens to disrupt pre-Christmas flights.

Three of New Zealand’s mari­time uni­ons say fuel com­pan­ies Z, Mobil and BP have let New Zea­l­and down after off-spec jet fuel threatens to dis­rupt pre-Christ­mas flights.

The three uni­ons led the Save Our Tankers cam­paign earli­er this year to keep the now-closed Marsden Point refinery oper­at­ing, with loc­al deliv­er­ies of fuel provided by New Zea­l­and flagged coastal tankers.

Air­lines have been advised this week they may be sub­ject to fuel ration­ing over Decem­ber after a bad batch of product was impor­ted.

The Mari­time Uni­on of New Zea­l­and rep­res­ent­ing sea­farers, the New Zea­l­and Mer­chant Ser­vice Guild rep­res­ent­ing ship’s mas­ters and officers, and the Avi­ation and Mar­ine Engin­eers Asso­ci­ation rep­res­ent­ing mar­ine engin­eers, today spoke out on the situ­ation.

Mari­time Uni­on of New Zea­l­and Nation­al Sec­ret­ary Craig Har­ris­on says the new situ­ation is a res­ult of let­ting fuel secur­ity be determ­ined by the self-interest of over­seas cor­por­ates.

“The com­pan­ies, in par­tic­u­lar Z Energy, wanted to move to this new sys­tem because it was more prof­it­able for them, not because it provided fuel secur­ity for New Zea­l­and.”

Mr Har­ris­on says the fuel com­pan­ies need to front up to the pub­lic and explain them­selves.

He says it has only taken a few months for the wheels to come off the new import sys­tem, at the worst pos­sible time for hol­i­day travel and as New Zea­l­and rebuilds its tour­ism industry.

Mr Har­ris­on says if New Zea­l­and still had its own refinery and tankers, then it would have the abil­ity to repro­cess off spec fuel loc­ally, cush­ion­ing the trav­el­ling pub­lic from sup­ply shocks.

He says New Zea­l­and is cur­rently depend­ent on new refined fuel sup­plies arriv­ing from refiner­ies in the North­ern Hemi­sphere.

The New Zea­l­and Mer­chant Ser­vice Guild says the gov­ern­ment was misled by force­ful assur­ances from Z Energy and oth­er com­pan­ies that the new mod­el would safe­guard against fuel sup­ply dis­rup­tions.

New Zea­l­and Mer­chant Ser­vice Guild Vice Pres­id­ent, Cap­tain Iain MacLeod, says uni­ons warned of this exact scen­ario pri­or to the Gov­ern­ment decision to endorse the new sup­ply mod­el.

Anec­dot­al evid­ence from industry sources sug­gests this is now the fifth occa­sion sub­stand­ard fuel has been impor­ted to New Zea­l­and under the new mod­el, says Cap­tain MacLeod.

There was a sim­il­ar avi­ation fuel dis­rup­tion in 2017 when a fuel pipe between Marsden and Auck­land was rup­tured. New Zea­l­and coastal tankers were able to be part of the response at that time.

Two New Zea­l­and crewed and flagged coastal tankers were taken out of ser­vice earli­er in 2022 after oil com­pan­ies shut down Marsden Point refinery and moved to a dir­ect import mod­el.

Mr Har­ris­on says there was still a need for refin­ing cap­ab­il­ity in New Zea­l­and and a fleet of New Zea­l­and coastal tankers to provide ded­ic­ated loc­al ser­vice and redund­ancy in case of emer­gency situ­ations.

He says the world is exper­i­en­cing volat­ile eco­nom­ic con­di­tions and energy secur­ity threats, and New Zea­l­and needs to build more resi­li­ence into the sys­tem.

 

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The Mari­time Uni­on of New Zea­l­and was formed in 2002 when the New Zea­l­and Water­front Work­ers’ Uni­on and the New Zea­l­and Sea­farers’ Uni­on joined togeth­er. We rep­res­ent water­front work­ers, sea­farers and related work­ers in New Zea­l­and.

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