The Albanese and Cook Labor Governments have announced they will kick off investigations into building a new oil refinery in Western Australia. The project is proposed by Perdaman, and would help strengthen energy security in Australia.
The Prime Minister and Premier travelled to Karratha to announce they will conduct a jointly funded $4 million pre-feasibility study for a new large-scale oil refinery, which would be built by Perdaman.
This refinery would create thousands of jobs, boost the local economy and help to secure Australia’s fuel security, particularly diesel for regional communities in WA.
The Perdaman facility could be the first new large-scale petrol refinery built in Australia since the 1960s, creating a major boost to local jobs and manufacturing as part of the Cook Labor Government’s Made in WA plan and the Albanese Labor Government’s Future Made in Australia plan.
Australia currently has two refineries, in Brisbane, Queensland and Geelong, Victoria, after four refineries closed under the former Coalition Government.
This is the first agreement to be signed as part of the Albanese Government's $10 million support for feasibility studies into new or expanded fuel refining capabilities, building on work with current refinery operators to retain current refining capability in the decade beyond 2030.
The study is part of the $15 billion Federal Government package to secure Australia’s fuel security now and ensure our energy sovereignty into the future. This package includes:
- $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility to increase supply and storage of fuel and fertiliser.
- $3.2 billion to establish a Government-owned Australian Fuel Security Reserve of around a billion litres focussed on diesel and jet fuel.
- A 10-day uplift to the Minimum Stockholding Obligation for petrol, diesel and jet fuel.
- $3.3 billion to reduce the fuel excise and slash the Heavy Vehicle Road User Charge for four months to help with the cost of living.
- $1 billion in interest free loans through the National Reconstruction Fund’s Economic Resilience Program, to provide cashflow relief to manufacturing and logistics businesses in critical supply chains.
The announcement was made by the Prime Minister and Premier while visiting Perdaman’s Project Ceres in Karratha, which will produce around 2.3 million tonnes of urea each year, when fully operational.
Project Ceres is supported by Government loans of around $475 million for the project and supporting infrastructure. It is estimated that the project will create 2,500 jobs during construction, 200 ongoing jobs when it is up and running and estimated to deliver $8.5 billion in public benefit.
Quotes attributable to Prime Minister Anthony Albanese:
“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.
“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.”
Quotes attributable to Premier of Western Australia Roger Cook:
“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.
“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.”
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
“At a time when overseas conflicts demonstrate the fragility of energy supply chains, investing in further onshore sovereign fuel refining capability is a sensible and prudent response to secure our energy security.
“Our Government will continue to work hard to ensure fuel supply remains secure now, while working with all states and territories to build a more sovereign and secure energy system for our country for decades to come.”
Quotes attributable to Western Australian Energy Minister Amber-Jade Sanderson:
“The Cook Labor Government’s nation-leading response to the fuel crisis has shored up supply and kept WA moving.
“A fuel refinery in the west will build further resilience into our energy system, keeping our $90 billion mining industry running and securing our economy against future shocks.
“I’m pleased that the Albanese Government is listening and delivering for Western Australians.”