Queensland extends BP fuel storage lease
Sydney (10 May)
The Queensland Government has extended BP’s lease for a fuel storage site at Brisbane Port until 2061, allowing the company to expand its storage capacity by 54 million litres from 2029, Premier David Crisafulli said on 10 May.
BP will spend up to A$100 million to refurbish five storage tanks by early 2029, Queensland’s government said. The company plans to store diesel, gasoline, and aviation fuels in the tanks, it added.
BP has the option to refurbish another five tanks – with a combined storage capacity of 49 million litres – at Brisbane Port, the Queensland Government said.
Queensland’s lease extension gives BP the certainty and confidence it needs to increase fuel storage at Brisbane Port by 20%, the company’s Australia President, Paul Augé, said.
Queensland’s government may lease other fuel storage sites to companies over the next few months. On 3 May, it asked companies to propose storage projects on government-owned land in a range of cities, including Brisbane, Townsville, and Mackay. The Government also plans to fast-track assessments and approvals for relevant refining and storage projects.
Queensland businesses have faced fuel pressures since the start of the US-Israeli war in Iran. One-third of businesses surveyed by Townsville Enterprise – a regional economic development body – have cut non-fuel costs and delayed investments because of fuel-related issues over recent months, it said on 5 May.
Over two-thirds of businesses have also changed their transport or logistics practices because of fuel issues, it added.
Australia had 42 days’ worth of petrol reserves, 35 days’ worth of diesel reserves, and 29 days’ worth of jet fuel reserves on 9 May, Energy Minister Chris Bowen said at a press conference.
Ships carrying another 785 million litres of petrol, 450 million litres of jet fuel, and 2.3 billion litres of diesel are set to arrive in Australia over the next month, Bowen added.
By Avinash Govind