Latest / Early Edition with Ryan Bridge / Simon Parham: Waitomo CEO on the fuel supply, Government's deal with Z Energy to store extra diesel at Marsden Point

Transcript

Simon Parham: Waitomo CEO on the fuel supply, Government's deal with Z Energy to store extra diesel at Marsden Point · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: You would have heard yesterday. We've spoken about this this morning.
• 0:03
  Speaker 1: Ninety million liters of diesel. The government is doing a
• 0:07
  Speaker 1: deal with Z. The Z proposal provided the strongest value
• 0:11
  Speaker 1: for money and the most flexibility about when and how
• 0:15
  Speaker 1: the fuel could be used. Simon param What tour More
• 0:18
  Speaker 1: Group CEOs with us this morning. Simon, nice to have
• 0:20
  Speaker 1: you on the show. Good morning, the money Ryan, A
• 0:23
  Speaker 1: sensible thing to do.
• 0:25
  Speaker 2: Yeah, I think it's a good thing. It's sort of
• 0:27
  Speaker 2: not only is it a buffer, but it's some flex
• 0:29
  Speaker 2: in the system that they use if there's any delays
• 0:31
  Speaker 2: in any cargoes. But I think it's also a good
• 0:34
  Speaker 2: message to the general public in that there is that buffer,
• 0:37
  Speaker 2: but also there is supply out there that you can buy,
• 0:40
  Speaker 2: and it shows that the system is rebalancing and the
• 0:42
  Speaker 2: market solving for itself across the AGA Pac region.
• 0:46
  Speaker 1: What do you reckon the taxpayer could be on the
• 0:47
  Speaker 1: hook for I mean, depends on how to low the
• 0:49
  Speaker 1: price goes.
• 0:50
  Speaker 2: Right, Yeah, and you know, I'd love to know what
• 0:53
  Speaker 2: the price is going to be what they buy. So
• 0:55
  Speaker 2: obviously I'm not proving to that, but I would assume
• 0:57
  Speaker 2: that there's a series of hedging instruments that they're using
• 1:01
  Speaker 2: and through the process to keep the diesel fresh is
• 1:04
  Speaker 2: going to be replacement in replenishment, So you know, it's
• 1:06
  Speaker 2: almost going to be a little and often approach as
• 1:09
  Speaker 2: the market moves down, because there is definitely bagradation in
• 1:12
  Speaker 2: the market, it's going to be you know, looking at
• 1:14
  Speaker 2: the future's curves, it's going to be cheaper in December
• 1:16
  Speaker 2: than it is today. So I'm sure that there's some
• 1:19
  Speaker 2: heading in there to reduce the impact on the taxpath.
• 1:22
  Speaker 1: The question I had is why not just and you
• 1:24
  Speaker 1: probably won't like this, but why not just force the
• 1:26
  Speaker 1: fuel companies to increase their minimum stockholdings themselves rather than
• 1:30
  Speaker 1: the tax player having to get involved.
• 1:33
  Speaker 2: Well, I think it's a prudent thing for the government
• 1:35
  Speaker 2: to do because I think the stockholdings show that there
• 1:39
  Speaker 2: has been a steady supply coming into the country, and
• 1:42
  Speaker 2: also chips on the water. There are plans to move
• 1:45
  Speaker 2: diesel to twenty eight days in the coming twelve months,
• 1:48
  Speaker 2: so I think this is sort of just jumping ahead
• 1:50
  Speaker 2: of that and making sure that through this volatile time
• 1:54
  Speaker 2: and un certain time, that there is product available should
• 1:56
  Speaker 2: we need.
• 1:56
  Speaker 1: It, will we need it, Will there be product unavailable
• 2:01
  Speaker 1: or will prices be so prohibitive that people, you know,
• 2:03
  Speaker 1: that that truckies won't be able to get around. Do
• 2:05
  Speaker 1: you think that we are still facing that possibility.
• 2:09
  Speaker 2: No, I don't think we're facing that possibility at all.
• 2:12
  Speaker 2: I think, you know, price is definitely doing some some
• 2:16
  Speaker 2: it's work that price does when it's high, it destroys
• 2:19
  Speaker 2: a bit of demand. But across the refineries in Asia Pacific,
• 2:23
  Speaker 2: you know, Singapore is getting crued now out of the
• 2:25
  Speaker 2: US and West Africa. In the last three weeks in
• 2:28
  Speaker 2: South Korea they purchased crude from seventeen different countries than
• 2:33
  Speaker 2: what they've traditionally, you know, purchased from. So you know,
• 2:36
  Speaker 2: it shows the market is solving for itself because there's
• 2:39
  Speaker 2: incentives to do it.
• 2:41
  Speaker 1: Simon Parham by Tom I'm Good TV on The Show
• 2:43
  Speaker 1: is All Way. For more from Earlily Edition with Ryan Bridge,
• 2:47
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• 2:50
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