Australia Eyes First New Oil Refinery in Decades

Australia is actively exploring the construction of its first oil refinery in more than 60 years, a significant step aimed at bolstering national energy security. This initiative is being driven by concerns over strained overseas fuel supplies, exacerbated by ongoing conflicts. A joint A$4 million feasibility study by the federal and Western Australia state governments is underway to assess the viability of the project.

Currently, Australia relies on imports for approximately 80% of its fuel. The nation's existing refineries, mostly established in the 1950s and 1960s, have faced closure due to high operating costs and competition from Asian refineries. Western Australia, in particular, lost its refining capacity with the closure of BP's Kwinana facility in 2021. Only two refineries remain operational on the country's east coast.