Australia hasn’t built an oil refinery in decades. But that could change

Australia hasn't built an oil refinery since the nineteen sixties, but that could change. The federal government announced this week it will jointly fund with Western Australia a four million Australian dollar pre-feasibility study into a new large-scale refinery—a response to the country's stark vulnerability in liquid fuel supplies. Australia once operated eight refineries. Today it has two: one in Queensland, one in Victoria. The others closed as aging infrastructure and rising costs made them uneconomical, and Australia now imports ninety percent of its petrol, jet fuel, and diesel from Asia. The recent US-Iran conflict exposed just how precarious that dependence is. The government has identified Western Australia as the most suitable state, with Karratha in the Pilbara region emerging as the leading candidate. Per The Conversation Australia, the site is close to the North West Shelf project, Australia's largest operating oil and gas development, and it's where the company Perdaman is already building a six point five billion dollar fertilizer plant. If approved, construction would take five to ten years. The new facility could significantly reduce Australia's reliance on imported fuel—but it also raises questions about how a new refinery fits with climate commitments to shift away from conventional liquid fuels.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton