Editorial: Oil companies need to clean up their act over dirty aviation fuel

Airlines must carry extra fuel into Wellington because of rationing there. Photo / Mark Mitchell

EDITORIAL

What could have been explained away as teething problems with imported aviation fuel is looking increasingly to be a systemic issue and it’s time for oil companies to clean up their act.

The latest is a batch of affected fuel in Wellington that has caused airlines to be rationed to 80 per cent of normal supplies. That means they have to carry more fuel for their next flight. Fortunately, this is not impacting schedules, but airlines are wearing the extra cost of carrying more fuel into the city.

Significantly, this is the third case within six months of imported refined aviation gas not being up to the exacting specifications for aviation. In November, there was a problem with water content. A month later, there was an issue with high conductivity levels that affected a big shipment used at Auckland Airport. That led to rationing and forced some airlines to divert to pick up more fuel on long-haul flights. The current problem in Wellington relating to the freezing point of fuel is not as disruptive and should be resolved by the weekend, but it is equally unacceptable for airlines and their passengers.

Before the Marsden Point facility was closed in April last year, jet fuel was refined in New Zealand. But the pandemic exacerbated the squeeze on Refining NZ’s margins. The Government considered - but, ultimately, rejected - providing financial support, and the refinery’s oil company majority owners shut it down. Now it imports aviation and land transport fuel, predominantly from refineries in Asia.

The dismantling of the former Marsden Pt oil refinery is scheduled to be completed by the middle of 2023. Photo / Michael Cunningham

The Maritime Union pushed to retain the refinery and a coastal tanker fleet and says the current problems are the result of allowing the country’s fuel security to come second to the profit margins of overseas corporates.

The consortium supplying Wellington Airport, BP and ExxonMobil, is apologetic for any inconvenience but is light on what led to the problem and how it is going to avoid a repeat.

Air New Zealand, the most heavily-impacted airline, is choosing its words carefully, saying it is “somewhat disappointed” about the third problem in such a short time.

Airlines flying to and around New Zealand need a safe and reliable fuel supply, especially given its geographically isolated location. Suggesting that fuel could be transported by truck between the four ports when there is a problem is not the answer, given the vulnerability of the country’s roads to storms.

Planes flying through Wellington for the past week have had to carry up to six tonnes more fuel. This is not only bad for airline finances but the extra CO2 emissions from carrying more weight are bad for the planet. Airlines should not need to tanker aviation fuel to be able to operate domestic and international services. It does reputational damage to New Zealand and airlines need answers.

Energy and Resources Minister Megan Woods will be relieved the problem in Wellington is of limited duration and isn’t disrupting flights. But that shouldn’t stop her from demanding how oil companies will avoid a repeat. That needs to happen now.