Refining NZ will stop bitumen production at its 135,000 b/d Marsden Point refinery from next year, leaving New Zealand entirely reliant on imports of the product.
The company is planning to operate its refinery at a reduced capacity of 90,000 b/d next year because of weaker oil products demand from the impact of the Covid-19 pandemic.
Marsden Point typically produces about 100,000-120,000 t/yr of bitumen, accounting for most of New Zealand's estimated bitumen consumption of around 160,000-170,000 t/yr. New Zealand typically imports around 50,000 t/yr of bitumen, although this may rise after Refining NZ halts output.
New Zealand imports bitumen from refineries in Asia-Pacific. The Tasco Amata last discharged a 6,100t bitumen cargo from Malaysia's Kemaman refinery at three ports in New Zealand in the week ending 2 October, according to Vortexa data.
Marsden Point's crude throughput will be cut by a third as part of its new operational plan. The decision to reduce refinery throughput and halt bitumen production comes as refinery margins across the globe have been severely hit by the Covid-19 outbreak, which has significantly disrupted fuel demand.
Refining NZ started a strategic review of the refinery in June.
New Zealand earlier this year announced an ambitious infrastructure spending plan, with a major focus on road projects. The country's peak construction period runs from September until March.
