Air NZ warned of impact of pipeline failure five years ago

Air NZ warned five years ago in a submission that a hit to the Marsden Point to Wiri pipeline could be a weak link, voicing concerns about the security of aviation fuel supply. Today it expressed "extreme disappointment" at the failure of the pipeline which came to light over the weekend. In a submission to a government review of New Zealand's oil security in 2012, the airline said a material disruption would result in a serious situation with implications for the aviation industry operating to and from this country and to the economy. Pipeline owner Refining NZ has assessed the material impact on its revenue will be in the order of $10m to $15m. It could be next week before the leak, near the Marsden Point Oil Refinery, is repaired. In its submission Air New Zealand said the volume of fuel that could be stored near the airport needed to be reviewed. "Storage capacity for jet fuel is modest by international standards. The volume of refined products at Wiri needs to be reconsidered in terms of an acceptable level of storage." Air New Zealand warned that a global supply shock would be understood and accepted by the travelling public. "They will not however uncritically accept a fuel supply shock that occurs solely within New Zealand," said the submission signed by CFO Rob McDonald.<br/>