Federal Government Commits $4 Million to Study for New Oil Refinery in Karratha

The Australian government has taken a significant step towards building its first new large-scale oil refinery since the 1960s. The Federal and West Australian Governments have agreed to spend $4 million on a study to determine whether an oil refinery should be built in Karratha, proposed by Perth-headquartered industrial and chemical producer Perdaman.

The project, known as Project Ceres, aims to produce around 2.3 million tonnes of urea each year when fully operational. The new refinery is expected to create thousands of jobs, boost the local economy, and help secure Australia's fuel security, particularly diesel for regional communities in WA.

The Federal Government has committed $10 million to support feasibility studies into new or expanded fuel refining capabilities. Defence Consultant John Blackburn told Sunrise that a new oil refinery in WA would take 'seven to ten years to get up and running'. Nationals Leader Matt Canavan expressed concerns that building a new oil refinery would be pointless unless net zero policies are scrapped.

The announcement was made by the Prime Minister and Premier while visiting Perdaman's Project Ceres in Karratha on Tuesday morning. The project is part of the Albanese Government's plan to shield Australia from the worst effects of global events, such as the ongoing war in the Middle East.