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BP Invests to Support Otago Growth

Release date:
17 June 2016
BP strengthened long-term fuel supply security for Otago with the official launch of two new storage tanks at its Dunedin terminal yesterday

The multi-million dollar tank expansion will enable the storage and distribution of an additional 2 million litres of jet fuel and 2 million litres of diesel to the region.

With projected diesel growth for the region of over 10% in the next five years and with Queenstown listed as the fastest-growing airport in NZ, National Terminals and Logistics Manager Haley Mahoney said BP recognised the need to invest more heavily in its south island infrastructure.

“This fuel hub is vitally important to support the region’s growth and ensure continuity of supply and distribution to our customers,” she said.

“A number of important regional customers will continue to be supplied out of the new facility so it’s great that we can provide them with the assurance that we are here to stay and are willing to evolve to meet their needs.”

Queenstown Airport General Manager of Operations Mike Clay said booming visitor numbers had significantly increased air movements through Queenstown which has put pressure on supply logistics to the airport.

“The tripling of jet fuel volume at the Dunedin terminal will help to relieve that pressure and will go a long way to ensuring we can continue to meet the increasing demand,” he said.

Oceana Gold Macraes Operations Commercial and Finance Manager Paul Whelan said the company was seeing “strong growth” and access to BP’s additional diesel would support their operations.

“It’s great to see that BP is committed to Oceana Gold and to the Otago region – this additional storage will dramatically reduce the risks associated with running out of fuel.

“We have a great relationship with BP and their willingness to make investment decisions to directly support their customers has really cemented that,” he said.

Port Otago Chief Executive Geoff Plunket said BP’s investment was an “extremely positive outcome for the region”.

“Not only will this long-term supply investment support ongoing growth in the Otago region but it will also see more volume through the Port,” he said.

As a significant proportion of Jet fuel is currently trucked from Christchurch to Queenstown Airport, the improved storage at Dunedin terminal is expected to reduce transportation risk by cutting trucking journeys in half.

“Reducing driver hours and the risks associated with driver fatigue is another really positive outcome from this decision,” Mahoney said.


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