Australia to Study First New Oil Refinery Since the Sixties

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Or sign-in if you have an account.w3)fs}vp)8o7o[kc(moz[ndk_media_dl_1.png Bloomberg News(Bloomberg) — Australian federal and state governments and industrial company Perdaman Group will study the feasibility of a new oil refinery in a move to rebuild domestic capacity after the Iran war highlighted the nation’s dependence on imported fuels.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountPrime Minister Anthony Albanese Tuesday announced a study for a new refinery in Karratha in Western Australia, backed by A$4 million ($2.8 million) of government funds. The project, which would be built and operated by closely held Perdaman Group, would be the first oil-processing plant to start in the nation since 1965 if it goes ahead. If built, the refinery would create thousands of jobs and help fuel security — especially in supplying diesel for regional communities in Western Australia, according to a statement from the prime minister’s office. Karratha is in the Pilbara region where many of the nation’s iron ore mines are located, and is also close to natural gas production facilities.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAustralia currently has just two oil refineries that are able to supply less than a fifth of its fuel needs, which led to price spikes in April and May as the closure of the Strait of Hormuz tightened global supplies. While the nation produces some of its own crude, output is limited — meaning any new processing plant would still be reliant on imports. “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,” Energy Minister Chris Bowen said in a statement. Perdaman — owned by billionaire Vikas Rambal — is also building a multibillion-dollar fertilizer plant in the region, which is expected to come online around the middle of 2027 in a move designed to lower the agriculture sector’s reliance on imports for its vital supplies of crop inputs. The facility will be able to produce as much as 2.3 million tons of fertilizer a year — a significant proportion of Australia’s annual usage, according to the company.That project has been supported by A$475 million in government loans, according to a statement from the Prime Minister’s office. The study announced Tuesday is part of an A$15 billion package to strengthen Australia’s energy resilience. “This is about fuel security for the whole nation,” Resources Minister Madeleine King said on radio on Tuesday morning. “The combination of that in fuel security as well as the security of fertilizer through the Perdaman urea project here in Karratha, which the government has been behind from the very beginning, are two very important projects.”—With assistance from Ben Westcott.(Updates with map, details of announcement.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.