Australia weighs first new oil refinery in 60 years to strengthen fuel security
Albanese said the project would help build the country's resilience and reduce its exposure to future supply shocks.
Australia is considering building its first new oil refinery in more than 60 years, Prime Minister Anthony Albanese announced, as conflict in the Middle East disrupts overseas supplies and highlights the need for stronger energy security.
Albanese said the project would help build the country's resilience and reduce its exposure to future supply shocks.
"One of the things that building national resilience does is it makes Australia less vulnerable to the impact of events around the world," Albanese said.
If deemed feasible, the large-scale refinery would be built by chemical producer Perdaman in Western Australia. The federal and state governments will jointly fund a feasibility study worth A$4 million (US$2.8 million).
Australia currently imports about 80% of its fuel needs. A Treasury briefing warned that the global oil market has grown more vulnerable, citing weaker buffers against supply shocks and falling inventory levels since the Middle East conflict escalated.
Most of Australia's refineries were built in the 1950s and 1960s, but high operating costs and competition from large-scale Asian refineries led to a wave of closures over the past three decades. Only two refineries remain operational nationally, down from eight in 2000. Western Australia's last refinery closed in 2021 after its owner converted the plant into a fuel import terminal.
