Australia could get its first new fuel refinery in 60 years

Australia could get a third fuel refinery, as the government commits $4 million to explore whether building an oil refinery in Western Australia is a good idea.

The new refinery would come after six of the country's eight refineries steadily shuttered over the past two decades, making the potential new site the first “large-scale” oil refinery built since the 1960s, according to the Federal Government.

Australia’s remaining refineries are Viva Energy's site in Geelong, which opened in 1954, and Ampol’s Lytton refinery, which opened in 1965. Both refineries receive government support to continue operating.

Even with a new oil refinery, Australia would still likely be reliant on overseas oil imports to supply it, as the nation has used up most of its current oil basins.

Prime Minister Anthony Albanese said exploring the possibility of a new refinery was about preparing Australia for the future.

“The longer war in the Middle East goes on the greater the impact on Australia will be, and my Government will continue to do everything we can to shield Australia from the worst effects – and set us up for the future,” Albanese said.

“My Government’s working to advance Australia’s interests – not just in this crisis but going forward as well to ensure we can meet future challenges.”

The pre-feasibility study is jointly funded by the Federal Government and the Western Australian State Government, with WA Premier Roger Cook highlighting the importance of diesel to WA’s mining dominated economy. 

“My government’s steady and experienced leadership has helped make Western Australia’s economy the strongest in the nation. It has allowed us to put WA first and prioritise getting fuel in bowsers during the war in Iran,” Cook said.

“Now, as part of my government’s Made in WA plan, I am proud to join the Albanese Labor Government to support Perdaman’s efforts to rebuild our State’s capacity to produce and distribute its own fuel.

“This includes diesel to support the regional communities which drive WA’s economy and which have been most at risk amid this conflict.

“While many Western Australians remain anxious about our State’s fuel security, we are doing everything it can to address these concerns by working with the Commonwealth to provide steady and experienced leadership and continue delivering our Made in WA plan.”