Shane Jones has a message for the major fuel companies, "sort it out, or we will" — saying they are dragging their heels over storage of jet fuel at Auckland Airport.
The Associate Energy Minister wrote to BP, Z Energy and Mobil this week outlining his concerns which stemmed from a 2017 pipeline rupture and subsequent government review.
"You have not yet made any commitments to invest in improving jet fuel storage at the airport".
Jones said he'd prefer the companies to invest without government intervention but "I can, if needed, direct officials to look at policy options".
He went on to note he wanted quarterly updates, rather than twice a year, and a timeline of an infrastructure plan by July.
In an interview with 1News, Jones said little progress has been made in recent years. "I'm deeply disappointed that, since 2019 — as we say in Kaitaia — jack has happened".
"Well, the fuel companies doubt my seriousness at their peril. You have the ability; you have the money; you value your corporate reputation — sort it out or we will".
The pipeline rupture resulted in a 10-day fuel shortage throwing air travel into chaos and impacting thousand of passengers.
Board of Airline Representatives of New Zealand executive director Cath O’Brien welcomed Minister Jones' letter, particularly after bad batches of jet fuel recently.
"In New Zealand, we have seen several allocation events in the last 12 to 24 months. We have seen sometimes, you know, less than ten days of availability when it comes to a fuel emergency".
The previous government did look to tackle this issue passing legislation last year which means from January there will need to be 24 days worth of jet fuel in New Zealand.
However, that could be anywhere in the country with the Associate Energy Minister now looking at the possibility of a new rule to be specific to Auckland.
O’Brien said fuel storage was needed across the country but Auckland took priority.
"Auckland Airport receives more than 70% of international arrivals to New Zealand. And so that is the very best and first place we should be looking to put additional fuel reserve."
In a statement, the Auckland Jet Fuel Supply Resilience Group — which represented the three fuel companies — said it was committed to ensuring there was a reliable supply.
"We recognise the need for more jet fuel storage at Auckland Airport and are working to do this to address the Government’s concerns."
Mobil Oil chairman Wayne Ellary said his company invested in storage in Northland last year and all the companies were looking at what could be done in Auckland.
"The preferred next step in the whole resiliency piece is a proposal to convert an existing tank at the Wiri terminal to jet fuel supply in the future."
While it was close by, it was not at the airport itself and there was no timeline on this plan. What was clear though, was that Kiwis will foot the bill.
"The reality is that any costs need to be passed on. That's what'll have to happen," Ellary said.
Jones' position was perhaps not a surprise as New Zealand First's coalition agreement with National had a focus on fuel security.
"It's not as if they're poor, it's not as if they lack financial resources," Jones said. And I fear they're stretching out the decision hoping to outlast the current Government.
"Well, I'm going to be around for a long time."
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