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Australia plans first new oil refinery in decades to boost fuel security amid Middle East war

By The Media Fact Checker teamUpdated 5 hours ago2 articles from 2 sources

Consensus Summary

Australia is exploring the construction of its first new oil refinery in decades, with both the federal and Western Australian governments funding a $4 million pre-feasibility study. The project, proposed by Perdaman, aims to address energy security concerns exacerbated by the ongoing Middle East war, which has strained fuel supplies and driven up prices. Currently, Australia relies on just two operational refineries—one in Brisbane and one in Geelong—and imports about 90% of its liquid fuels. The federal government has allocated $10.7 billion in May to bolster fuel security, including reserves and feasibility studies, while WA has taken emergency measures to manage supply chain transparency. The move faces criticism from environmentalists, who argue it contradicts efforts to reduce fossil fuel dependence. Both sources agree the conflict has threatened fuel security since February, with Australia holding reserves of 42 days’ worth of petrol, 38 days’ worth of diesel, and 32 days’ worth of jet fuel.

✓ Verified by 2+ sources

Key details reported by multiple sources:

  • Australia is investigating building its first new oil refinery in Western Australia, with a $4 million pre-feasibility study announced by the federal and WA governments.
  • The proposed refinery would be built by Perdaman, a multinational organization known for its fertiliser production operations.
  • Australia currently has two operational oil refineries: one in Brisbane (Ampol’s Lytton refinery) and one in Geelong (Viva Energy’s facility).
  • BP closed its oil refinery in Kwinana (south of Perth) in 2021, which was the country’s largest refinery.
  • The federal government’s fuel security package includes $10.7 billion, announced in May, with $10 million allocated for feasibility studies.
  • Australia imports about 90% of its liquid fuels, a vulnerability exposed by the Middle East war.
  • The federal government confirmed Australia had 42 days’ worth of petrol, 38 days’ worth of diesel, and 32 days’ worth of jet fuel reserves.
  • The Middle East war has threatened Australia’s fuel security since February.
  • Prime Minister Anthony Albanese and WA Premier Roger Cook will announce the $4 million pre-feasibility study.

Points of Difference

Details reported by only one source:

ABC News
  • The pre-feasibility study is part of a $15 billion federal government package to secure fuel security and energy sovereignty.
  • WA Premier Roger Cook appointed a Fuel Supply State Controller in March to respond to fuel supply issues amid the Middle East war.
  • In April, the WA government invoked emergency powers to force fuel companies to share supply chain information.
  • Federal Climate Change and Energy Minister Chris Bowen emphasized building a 'more sovereign and secure energy system'.
  • WA’s Energy and Decarbonisation Minister Amber-Jade Sanderson supported the feasibility study, stating WA is heavily reliant on fuel for its economy.
  • The conflict has threatened Australia’s fuel security since February, with regional WA communities at risk.
The Guardian
  • Treasurer Jim Chalmers warned the Middle East conflict poses a 'substantial threat to global inflation' and oil prices may remain high.
  • Petrol and diesel prices rose by 25 cents and 50 cents per litre this month due to the conflict.
  • Financial markets priced a one-in-three chance of a Reserve Bank rate hike on 11 August.
  • The proposed refinery would cost billions and may require ongoing government support to stay competitive.
  • The federal government’s $10.7 billion package includes $7.5 billion to secure extra fuel and fertiliser shipments and $3.2 billion to build an extra 1 billion-litre reserve of diesel and jet fuel.
  • Environmentalists criticized the government for focusing on fossil fuels instead of reducing reliance on them.

Contradictions

Conflicting information between sources:

  • The ABC states Australia had eight oil refineries just over two decades ago, while the Guardian states Australia has had a series of refinery closures over the past 25 years without specifying the exact number previously operating.
  • The ABC mentions a $15 billion federal package for fuel security, while the Guardian specifies a $10.7 billion package with detailed allocations but does not mention $15 billion.

Source Articles

ABC

Australia's first new oil refinery in decades touted for WA

The proposed facility would be built by Perdaman and be the first new large-scale petrol refinery built in Australia since the 1960s.

6 hours ago
GUARDIAN

Potential for first Australian oil refinery in 60 years as treasurer braces for inflation from Middle East war

Commonwealth and Western Australia to fund study into construction of large-scale petrol refinery as buffer against fuel vulnerability Get our breaking news email , free app or daily news podcast Australia’s first new oil refinery in 60 years could be built in Western Australia under the Albanese government’s long-term strategy to shield the country from future global oil shocks. The commonwealth and the WA government will fund a $4m early-stage feasibility study into construction of what would

6 hours ago