Original quote was $36M

Press, 30 September 1983, Page 3

Original quote was $36M

PA Whangarei The cost of building a bigger refinery at Marsden Point was first quoted at $36 million in 1966. The refinery extensions proposed then were a relatively simple addition to the catalytic process used in the existing refinery which began producing petrol in 1964.

Since then, the cost has risen with every estimate. The following is a list of figures from the files of the “Northern Advocate” newspaper:

1977, September: The Minister of Energy, Mr Gair, quotes $3OO million.

1978, March: The chairman of the New Zealand Refining Company, Mr A. A. Revell, announces a list of four costs presented to successive governments — 1966, $36 million; 1971, $9O

million; 1974, $lBO million; 1976, $238 million. 1978, September: Mr Revell quotes $370 million. 1980, August: Badger-Chi-yoda set up office in Whangarei. The estimated cost of project is $5OO million. (The refinery expansion has now been altered to use a more expensive but more versatile hydrocracker system.) 1981, October: The cost increases from $5OO million to $625 million, then to $BOO million. There is also speculation that the cost would rise to $l3OO million, but Mr Birch calls this figure “idle speculation.”

1981, December: The contract is let at $1035 million. 1983, July: The New Zealand Refinery Company announces a cost of $1550 million.

1983, September 28: Mr Birch announces a cost of $1650 million.