Australia Revives Oil Refinery Plans Amid Middle East Fuel Crisis

Australia is reviving its plans to build a new oil refinery after over 60 years, in response to tightened fuel supplies caused by conflict in the Middle East. The federal government and Western Australia's state government have allocated AU$4 million for a feasibility study to potentially boost the country's energy security.

The nation currently relies on imports for around 80% of its fuel needs. Federal Resources Minister Madeleine King emphasized the critical importance of this project, particularly for Western Australia, which has been without refining capacity since the closure of BP's Kwinana facility in 2021.

Only two refineries remain operational: Ampol's Queensland refinery and Viva Energy's plant in Victoria. This is a significant drop from eight refineries that existed in 2000, with high costs and increased competition from larger Asian refineries leading to closures over the past three decades.