Prime Minister Anthony Albanese has stated that a significant fire at one of Australia’s two operational oil refineries will not necessitate the next phase of the government’s four-step national fuel security strategy. The incident occurred at the Viva Energy facility in Geelong, where a section dedicated to petrol production caught fire late Wednesday, leading to a reduction in operational capacity.
As a result of the blaze, the refinery is currently functioning at 60 percent capacity for petrol production, while diesel and jet fuel outputs have been reduced to 80 percent due to safety measures. Albanese, who shortened his trip to Malaysia to visit the site, indicated that while the situation has affected production, there is hope for a gradual return to normal operations. “It has slowed down just slightly because of the circumstances which are there,” he told reporters gathered outside the facility.
The Geelong refinery typically supplies approximately 10 percent of Australia’s fuel and half of Victoria’s fuel needs. Energy Minister Chris Bowen cautioned that the damage could have lasting effects on petrol supply for an extended period. However, Viva Energy CEO Scott Wyatt mentioned that he could not provide a specific timeline for restoring full production until a thorough assessment of the damage has been completed. Nevertheless, he expressed confidence that the incident would not adversely affect fuel supply in the Victorian market.
Despite the fire, Albanese reassured that the level of damage was insufficient to warrant an escalation in the national fuel security plan, underscoring that Australia remains in stage two of the four-point framework established by leaders at the federal, state, and territory levels last month. “The government’s put in place the four stages in order to plan, in order to prepare, for circumstances which are predominantly impacted by global events, not by events here,” he remarked.
In related developments, the Prime Minister announced that BP would join an agreement with Export Finance Australia, enabling the government to underwrite additional fuel shipments. This comes on the heels of Australia securing an extra 100 million litres of diesel from Brunei and South Korea, along with increased purchases of fertiliser and a broader halal meat trade with Malaysia. These transactions were made possible by recently enacted legislation that allows the federal government to assume financial risks associated with potentially high-cost shipments that fuel companies might otherwise avoid.
During his recent tour of Singapore, Brunei, and Malaysia aimed at strengthening fuel supply lines from key exporters, Albanese hinted at more arrangements in the works, particularly following discussions with Indonesia. An update regarding Australia’s fuel stockpiles and incoming shipments is expected from the government on Saturday.
