Australia is considering building its first new oil refinery in more than six decades as conflict in the Middle East exposes the country's heavy reliance on imported fuel.
Prime Minister Anthony Albanese announced on Tuesday (28 July) that the federal government and the Western Australia state government will jointly invest $2.78 million (A$4 million) in a feasibility study for the project.
If approved, the refinery would be built by industrial chemicals company Perdaman in Western Australia.
Albanese said the project could strengthen Australia's fuel security and make the country less vulnerable to overseas disruptions.
"The war in the Middle East... is having an impact here, like it's having an impact right around the world," he told reporters in Karratha.
"One of the things that building national resilience does is it makes Australia less vulnerable to the impact of events around the world."
He added that the study would determine whether the refinery is commercially viable.
"We want to make sure that we get the right location but we want to make sure as well that it's a project that stacks up, that can go forward," Albanese said.
Australia imports around 80% of the fuel it consumes, leaving it exposed to global supply disruptions.
The renewed conflict in the Middle East has increased concerns over fuel availability and rising energy costs. A recent Treasury briefing warned that the global oil market has become more vulnerable, with smaller buffers against supply shocks as oil inventories decline and refined fuel markets tighten.
The government says reducing dependence on imports has become a strategic priority.
Australia's refining industry has steadily declined over the past three decades as older plants struggled to compete with larger and cheaper refineries across Asia.
Most of the country's refineries were built during the 1950s and 1960s. Today, only two remain in operation: Ampol's refinery in Queensland and Viva Energy's refinery in Victoria. In 2000, Australia had eight operating refineries.
Western Australia has had no refining capacity since BP closed its Kwinana refinery in 2021 and converted the site into a fuel import terminal.
If the proposed project goes ahead, it would become Australia's first newly built oil refinery in more than 60 years and mark a significant shift in the country's approach to energy security.
At least seven people have been killed and more than 125 injured after two passenger trains collided in Egypt’s Giza province, south of Cairo...
A 24-year-old man who killed six people in Poland’s central city of Krakow had advanced military-style shooting skills, according to a s...
Monday marks the second of two days of national mourning in Poland as police bolstered security after six people were killed in a mass sh...
Poland has declared two days of national mourning after a gunman opened fire in Kraków's historic main square. Investigators are examining possible far-right influences and the discovery of three bodies at the suspect's home.
Monday marks the second of two days of national mourning in Poland as police bolstered security after six people were killed in a mass shooting in Kraków.
Russian forces launched a ballistic missile attack on Kyiv early on Saturday, 7 November, injuring two people and damaging residential buildings, just three days before U.S.-led peace talks with Ukraine and Russia in Abu Dhabi.
The Saudi-led coalition fighting Yemen's Houthis said it intercepted and destroyed two ballistic missiles fired by the Iran-aligned group towards Riyadh on Sunday (8 November), after loud booms were heard in the Saudi capital. The Aramco building was damaged by falling debris.
New Zealand’s ruling centre-right National Party has taken a narrow lead over the opposition Labour Party in Saturday’s general election, with the country’s current three-party coalition projected to retain power.
At least seven people have been killed and more than 125 injured after two passenger trains collided in Egypt’s Giza province, south of Cairo, on Sunday.
A 24-year-old man who killed six people in Poland’s central city of Krakow had advanced military-style shooting skills, according to a spokesperson for the gun club he attended.
Monday marks the second of two days of national mourning in Poland as police bolstered security after six people were killed in a mass shooting in Kraków.
Clashes between protesters and police erupted in Paris and Marseille on Saturday as demonstrations over rising living costs and declining public services continued for a fourth consecutive weekend across France.
Security measures have been stepped up in Antalya, Türkiye, ahead of the COP31 United Nations climate summit, which begins on Monday, 9 November, with thousands of additional personnel deployed across the Mediterranean city.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment