Refining NZ has advanced its plan to convert New Zealand’s sole oil refinery into a fuel import terminal, signalling a potential boost to tonne miles for product tankers.

In an operational update published on Thursday, the NZX-listed company said it had commenced the front-end engineering and design works for the conversion project, including estimated costs and timing.

“Discussions regarding the potential conversion to an import terminal continue with customers,” said Refining NZ, which operates the 135,000-barrel-per-day (bpd) Marsden Point refinery.