Australia's first new oil refinery in decades touted for WA

Australia could build its first new oil refinery in decades, with the federal government set to investigate constructing a large-scale facility in Western Australia as part of its energy security response.

Prime Minister Anthony Albanese and WA Premier Roger Cook will announce a $4 million pre-feasibility study on Tuesday, the ABC understands.

The new refinery was proposed and would be built by Perth-headquartered Perdaman, a multinational organisation known for its fertiliser production operations. 

There are just two oil refineries remaining in Australia, located in Brisbane and Geelong. 

In 2021, BP closed its oil refinery in Kwinana, south of Perth, which was the country’s largest. 

The ABC understands the pre-feasibility study for the new refinery is part of a $15 billion package from the federal government to secure the nation’s fuel security and energy sovereignty.

Just over two decades ago, Australia had eight oil refineries. Many then closed after being deemed economically unviable. 

Mr Cook appointed a Fuel Supply State Controller in March to respond to fuel supply issues in WA amid the Middle East war.

In April, the WA government said it would invoke emergency powers, forcing fuel companies to share supply chain information.  

The government said the move would ensure it could allocate fuel where it was needed most, which included regional WA. 

‘Doing everything we can’

In a statement, Mr Albanese said the federal government was working to ensure it could meet future challenges, beyond conflict overseas.

“The longer war in the Middle East goes on, the greater the impact on Australia will be,” he said, adding his government would “do everything we can to shield Australia from the worst effects”.

Last week, the Commonwealth government confirmed the country had 42 days’ worth of petrol, 38 days’ worth of diesel, and 32 days’ worth of jet fuel. 

Mr Cook said he supported Perdaman’s efforts to rebuild the state’s capacity to produce and distribute its own fuel.

“This includes diesel to support the regional communities which drive WA’s economy and which have been most at risk amid this conflict,” he said.

Federal Climate Change and Energy Minister Bowen said the government would work with all states and territories to build a “more sovereign and secure energy system”.

Earlier this month, WA’s Energy and Decarbonisation Minister Amber-Jade Sanderson told the ABC she thought WA was in a strong position to undertake the feasibility study.

“We’re a large jurisdiction, heavily reliant on fuel for our industry and our economic success,” she said.

“We need to make sure that we have that refining capacity.”