Federal, WA Governments fund oil refinery study
Sydney (29 July)
The Western Australian (WA) and Australian Federal Governments have agreed to jointly fund a pre-feasibility study and early design work for an oil refinery to improve Australian energy security.
“Investing in … onshore sovereign fuel refining capability is a sensible and prudent response to secure our energy security,” Energy Minister Chris Bowen said on 28 July. Australia currently maintains just two operational oil refineries, one of which has run at limited capacity since late-April.
The Governments will give Perdaman – a WA-based fertiliser and energy developer – A$4 million to complete early refinery development work, both said in a joint statement. They expect Perdaman’s developing refinery to produce multiple refined oils, including petrol and diesel.
“Perdaman will undertake a combined pre-feasibility and [early design] program to determine the optimal refinery configuration, supporting port infrastructure and logistics solutions,” the company said.
It plans to develop a refinery in WA. But its development work will support research into the best location and feasibility of a new Australian refinery, Resources Minister Madeleine King told ABC Perth.
The Federal Government expects to fund refinery development projects in other parts of the country, King added. Its funding for Perdaman’s refinery study comes from a A$10 million feasibility study fund that it created in the 2026-27 Federal Budget.
The Federal Government has allocated A$10 billion to fertiliser and fuel supply schemes over the last year, largely in response to Iran war-related fuel supply disruptions. It also slashed Australia’s fuel excise rate from A$0.53/litre to A$0.21/litre in early April, before lifting it back to A$0.37/litre on 1 July, to curb fuel price pressures.
The Government plans to raise its fuel excise rate back to A$0.53/litre on 2 August. But Minister King and Foreign Affairs Minister Penny Wong made mildly conflicting comments about the excise rise on 28 July.
Early in the day, King declined to rule out an extension to the fuel excise cut in an interview with ABC Perth. The Government would balance the cost of an extended excise cut against ongoing fuel cost pressures, she said.
“We’re … very, very cognisant of the pain felt at the bowser and … I know for a fact the Treasurer and the Prime Minister and other ministers are actively looking at [the fuel excise rate],” King added.
Shortly after King spoke to ABC Perth, Wong appeared to rule out an excise cut extension in an interview with ABC News Breakfast. “It’s not in our current plans to continue the excise. We said it would step down. What we are focused on is assuring continued fuel and fertiliser coming into Australia,” Wong said.
By Avinash Govind