Refining NZ successfully raises funds to support growth of Channel Infrastructure private storage services
For immediate release
Refining NZ has completed a $39.0 million equity raise to fund growth through private storage services, which is the first of a range of exciting growth opportunities for Channel Infrastructure and Marsden Point after conversion from Refining NZ, in April 2022.
For immediate release
30 November 2021
Marsden Point
Refining NZ successfully raises funds to support growth of Channel Infrastructure private storage services
Refining NZ has completed a $39.0 million equity raise to fund growth through private storage services, which is the first of a range of exciting growth opportunities for Channel Infrastructure and Marsden Point after conversion from Refining NZ, in April 2022.
The equity raise, which was very well supported, is to be supplemented with a separate share purchase plan for other shareholders, beginning later this week.
Commenting, CEO Naomi James said:
“Channel Infrastructure’s vision is to be New Zealand’s leading independent fuel infrastructure company, and that means pursuing opportunities in addition to our core business of operating the fuel import terminal. Our transition from New Zealand’s only oil refinery has meant a big change to how we keep New Zealand moving, but as we make this change, there are exciting opportunities for us to diversify what we do, as we look to build an energy hub for the North, and this is just the first.
In addition to pursuing site repurposing opportunities, Refining NZ is committed to the ongoing operation of our refinery over the next four-months, and to managing the safe shutdown and decommissioning of refinery assets. We are also working hard to support our people impacted by the changes to use the time between now, and when we transition, to find new jobs, or training opportunities – so they are ready to move to new jobs, when we become Channel Infrastructure.”
About Channel Infrastructure NZ
Channel Infrastructure’s vision is to be New Zealand’s leading independent fuel infrastructure company. The Company will utilise the deep-water harbour and jetty infrastructure at Marsden Point to import refined fuel, which is owned by its customers. This will replace the crude oil that our customers import today for refining.
Fuel will be stored at the Marsden Point site in existing tanks at the largest fuel terminal in New Zealand, with 180 million litres of shared capacity, as well as capacity to provide additional storage. Channel Infrastructure will continue quality fuel testing services both at the Marsden Point site and around New Zealand, through its IPL subsidiary.
Fuel from Marsden Point will be distributed on behalf of Channel Infrastructure’s customers primarily to the Auckland and Northland markets, which make up around 40% of New Zealand’s fuel demand, through the 170-kilometre Refinery to Auckland Pipeline (the RAP) and the truck loading facility (the TLF) located adjacent to the Marsden Point site.
Conversion to an import terminal will reduce the Company’s direct CO2 emissions by almost one million tonnes per annum, delivering around a third of the Government’s first Emissions Reduction Budget1. The RAP continues to provide the lowest carbon emissions option for delivering fuel to New Zealand’s largest market – Auckland.
Refining NZ has been the country’s only oil refinery since it was established in 1961. In response to a significant decline in refining margins as a result of excess refining capacity in the Asian region, Refining NZ initiated a strategic review of the business in April 2020, to determine the optimal future business model and capital structure for the Company’s future. This review included extensive engagement with a range of stakeholders including customers and the Government regarding potential options for ongoing refinery operations and the potential conversion to import terminal operations.
For more information on Channel Infrastructure, please visit: https://www.refiningnz.com/what-is-channel-infrastructure/
ENDS
1 Reference: Transitioning to a low-emissions and climate-resilient future: emissions reduction plan discussion document (https://environment.govt.nz/publications/emissions-reduction-plan-discussion-document/). The Company’s emissions are expected to reduce by c. 3.5MT over the 2022 -2025 budget period.
