Australia Considers First Oil Refinery in Decades Amid Middle East Tensions

Australia is considering building its first new oil refinery in over six decades as tensions in the Middle East threaten fuel security. The federal government and Western Australia state government will jointly invest $2.78 million (A$4 million) in a feasibility study for the project.

The proposed refinery would be built by industrial chemicals company Perdaman, and could help reduce Australia's reliance on imported fuel. Currently, the country imports around 80% of its consumed fuel, making it vulnerable to global supply disruptions.

Prime Minister Anthony Albanese said that the conflict in the Middle East is having a direct impact on Australia's fuel security, and that building national resilience would make the country less vulnerable to overseas events. He noted that the feasibility study would determine whether the refinery is commercially viable.