Channel Infrastructure chief executive Naomi James is pleased with how the new company is tracking since April.
Photo / Tania Whyte
Marsden Point-based Channel Infrastructure has supplied nearly 1.5 billion litres of fuel products to the Northland and Auckland markets since it started operation six months ago.
In its quarterly conversion project update for the three
months ending September to the NZX, the company said it has successfully completed 35 import shipments since April 1 including the first delivery of sustainable aviation fuel.
Channel Infrastructure chief executive Naomi James said the permanent decommissioning of the refinery plant was more than 70 per cent completed and should finish by the first quarter of next year.
She said $73 million had been spent up until the end of June and $98m as of September 30, including about $7m of private storage costs.
“The conversion spend, partly offset with positive cash flows from terminal operations, resulted in an increase in net borrowings from $215 million as at June 30, 2022, to $230 million as at September 30, 2022,” James said.
She said workforce transition has also been largely complete, with 97 per cent of those who have left having secured work elsewhere.
The company has had significant interest in its effort to source lower-cost renewable electricity, James said.
“We are delivering on our plans to utilise Marsden Point’s highly strategic assets to deliver long-term shareholder value, while at the same time supporting our customers to decrease their environmental impact in the future.
“Jet fuel throughput continues to grow steadily and is approaching 60 per cent of pre-Covid levels. Further strong growth in jet demand is expected as more overseas airlines return to Auckland over the summer period and long-haul routes and capacity is added.”
Channel Infrastructure predicts that by 2040, between 70 per cent and 80 per cent of the refined fuel the company handles would be jet fuel.
Due to an increase in long-haul international flights, Auckland Airport presently consumes 80 per cent of the jet fuel sent through the pipeline from Marsden Pt.
Channel Infrastructure has a tank storage capacity of close to 900 million litres but only one-third or 280m litres across 27 tanks is currently used.
James said terminal upgrade works, including changes to increase vessel discharge rates and commissioning of the first fire system and secondary-containment upgrades and continued private storage tank conversion, were ongoing and progressing well.