The Commerce Commission has received two clearance applications from Mobil Oil New Zealand Limited to acquire up to 100% of Z Energy Limited’s ownership interest in two assets used to supply jet fuel at Auckland International Airport: the Wiri to Auckland Pipeline (WAP) and the Auckland Airport Joint User Hydrant Installation (JUHI). If Mobil acquires all of Z’s ownership interest, it may become the majority owner of both assets.
The WAP delivers jet fuel to Auckland International Airport from the storage facility at Wiri, which is then stored at the Airport at the JUHI. The assets are currently jointly owned and operated by Mobil, Z and BP Oil New Zealand Limited under the terms of two separate joint venture agreements.
A public version of the two clearance applications will be available shortly on the Commission’s case register.
Background
Mobil is part of the ExxonMobil group of companies, which globally has operations in the fuel, lubricants and chemicals industries. In New Zealand, Mobil supplies a full range of fuel products, including jet fuel, and distributes these using a number of storage terminals, pipelines, trucks and other infrastructure assets that it has ownership interests in, or access to.
Z is a New Zealand based fuel company that has operations across the fuel supply chain, including in relation to refining, importing, storing, distributing and supplying customers via wholesale and retail channels. Like Mobil, Z supplies a full range of fuel products, including jet fuel.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
