Australia eyes first new oil refinery in more than 60 years

Prime Minister Anthony Albanese and Western Australia Premier Roger Cook announced a jointly funded A$4 million pre-feasibility study for a proposed large-scale refinery to be developed by Perdaman in the city of Karratha.

If approved, the facility could become Australia's first new large-scale oil refinery since the 1960s. Officials said the project would create thousands of jobs, support local manufacturing and improve supplies of diesel, particularly for regional communities in Western Australia.

Australia currently has only two operating oil refineries, located in Brisbane and Geelong, following the closure of four refineries in recent years.

The agreement is the first to be signed under the Albanese government's A$10 million program supporting feasibility studies for new or expanded fuel refining capacity. It also forms part of a broader A$15 billion fuel security package that includes investments in fuel and fertilizer storage, a government-owned fuel reserve of about 1 billion liters focused on diesel and jet fuel, higher minimum fuel stockholding requirements, temporary fuel tax relief, and A$1 billion in interest-free loans for manufacturers and logistics companies in critical supply chains.

The announcement was made during a visit to Perdaman's Project Ceres in Karratha, a fertilizer project expected to produce about 2.3 million tons of urea annually once fully operational. Backed by around A$475 million in government loans, the project is expected to create 2,500 construction jobs, 200 permanent positions and generate an estimated A$8.5 billion in public benefits.

Albanese said the prolonged conflict in the Middle East had highlighted the need to protect Australia from disruptions to global energy supplies and strengthen the country's long-term energy resilience.

Roger Cook said the proposed refinery would help restore Western Australia's capacity to produce and distribute its own fuel.

"...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," he said, adding that greater diesel production would benefit regional communities and support the state's economy.

Climate Change and Energy Minister Chris Bowen said recent overseas conflicts had demonstrated the vulnerability of global energy supply chains.

“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," he said.

Earlier, Qazinform News Agency reported that Australia and India had sealed landmark uranium export deal.