DistantNews
Support us
🇦🇺 Australia /Energy & Infrastructure

Australia Considers New Oil Refinery in Western Australia Amid Energy Security Concerns

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Australia is considering a new large-scale oil refinery in Western Australia, with governments launching a $4 million feasibility study.
  • The refinery would aim to secure Australia's refined fuel supply, though it would still rely on imported crude oil.
  • The Coalition has indicated support for the project, which could be the first new refinery built in Australia since the 1960s.

The Australian government, alongside the Western Australian government, is exploring the construction of a new large-scale oil refinery in Western Australia, initiating a $4 million feasibility study. This move aims to bolster Australia's domestic supply of refined fuel, a critical need highlighted by the closure of the BP Kwinana refinery in 2021, leaving the state without refining capacity.

Resources Minister Madeleine King stated that while the new facility would still depend on imported crude oil, the ability to store crude oil offers a significant advantage over storing refined fuel. Crude oil can be stored for much longer periods, providing a crucial buffer during times of crisis or supply disruptions.

WA is now left without any fuel refining capacity after the closure of BP and Kwinana in 2021. So that is a really important initiative that we will look at where this could go.

— Madeleine KingHighlighting the need for a new refinery due to the closure of existing facilities in Western Australia.

"WA is now left without any fuel refining capacity after the closure of BP and Kwinana in 2021. So that is a really important initiative that we will look at where this could go," King said. She emphasized that the storable nature of unrefined crude oil is a key differentiator in ensuring energy security.

The difference with crude oil, the unrefined product, is that it is storable and storable for much, much longer, almost permanently, than refined petroleum.

— Madeleine KingExplaining the strategic advantage of storing crude oil over refined fuel.

Meanwhile, the federal government is still deliberating on extending the fuel excise cut, which is set to expire on August 2. Oil prices have surged past $US100 a barrel amid escalating geopolitical tensions in the Middle East, increasing pressure on Australian households. King acknowledged these pressures, stating the government is monitoring the impact of fuel prices on families and considering relief measures.

Shadow Treasurer Tim Wilson has signaled that the Coalition would likely support the construction of the new refinery, pending a review of the study's details. If built, it would mark the first new large-scale petrol refinery in Australia since the 1960s, representing a significant investment in the nation's energy infrastructure.

It's been a long time and we've already had multiple reports of oil crises just this year. It would be nice to see the government take some action.

— Tim WilsonExpressing the Coalition's interest in the government taking action on energy security.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog