Marsden Point oil refinery's transition to an import-only terminal is running on time and within budget.
Channel Infrastructure says the most complex and risky part of the conversion project was behind them. Photo: 123rf.com
Channel Infrastructure, formerly known as Refining NZ, said conversion costs were in line with expectations, with approximately $74 million spent in the three months ended June.
The company had also increased its borrowing from $173m to $215m.
Chief executive Naomi James said the quarter had been successful and several milestones had been achieved.
"The most complex and risky part of the conversion project with the transition from refinery to terminal operations is now behind us, and the project remains on-plan and to budget."
The company's first three months as an import terminal coincided with the opening of New Zealand's borders and the recovery in jet fuel demand.
"Overall, the terminal supplied well over half a billion litres of product to the Auckland and Northland markets," the company said.
"Jet fuel throughput has increased significantly and is now sitting at around half of pre-Covid demand."
Channel Infrastructure was also in the process of cutting its workforce from about 300 staff to about 70 in the next two years, as it scaled down the size of its operations.
Over 70 percent of its existing employees had already lined up their next job before leaving, it said.
The company aimed to have 90 percent of its workforce either in a new job or retraining within six months of leaving the business.
