bp Australia, a subsidiary of oil and gas giant bp, said that it will stop fuel production at its Kwinana oil refinery in Kwinana Beach and make it into a fuel import terminal to help ensure fuel supply security for Western Australia.
Closing of the refinery will leave 650 jobs at risk.
Located near Fremantle, the oil refinery of bp Australia has been providing fuels for Western Australia for 65 years. bp said that the continued growth of large-scale, export-oriented refineries across Asia and the Middle East has changed the Australian market structurally.
As a result of regional oversupply and continued low refining margins, the Kwinana oil refinery is no longer viable economically, said bp. The oil and gas giant said that after looking into various options for the refinery’s future, bp has determined that conversion to a fuel import terminal is the best option.
Frédéric Baudry – bp Australia head of country said: “bp’s Kwinana Refinery has played an important role in the development of Western Australia. It helped underpin the early development of the surrounding community and key industries. Generations of Western Australians have worked at the facility, building a fantastic legacy of safe and reliable operations that we will always be proud of.
“Today’s decision to cease refining is a difficult one and not in any way a result of local policy settings. It comes in response to the long-term structural changes to the regional fuels market. Converting to an import terminal will not impact the safe and reliable supply of quality fuel products to Western Australia; however, it will require fewer people to run.
“We deeply regret the job losses that will result and will do everything we can to support our people through the transition.”
Presently, the Kwinana oil refinery employs nearly 650 people, which includes 400 permanent staff and 250 contractors.
bp Kwinana oil refinery to be converted as fuel import terminal. Photo courtesy of bp p.l.c.
Operations at the Kwinana oil refinery to cease in the next six months
Refining operations at the oil refinery in Western Australia will be ceased over the coming six months, with a conversion workforce to support works at the site.
The new fuel import terminal in Kwinana Beach will support construction work out to 2022 and upon its completion, is anticipated to support nearly 60 jobs.
Frédéric Baudry said: “bp is committed to playing a leading role in growing Australia’s future prosperity, making significant investments in natural gas production, as well as in convenience and mobility businesses.
As part of its plans in Australia, bp will look to consolidate its position in the North West Shelf joint venture via gas exploration at Ironbark offshore well. The oil and gas giant will also invest in retail growth, and also in advancing low carbon projects with Lightsource bp.
Furthermore, bp will study the feasibility of a large-scale hydrogen export plant in Geraldton in Western Australia in partnership with the Australian government.
Apart from investing in a fuel import terminal at Kwinana, bp is also looking for future options for the site, which include a potential clean energy hub to tap into the existing and emerging technologies needed for the decarbonization of the Western Australian economy.
bp said that a multiuse clean energy hub can produce and store lower carbon fuels such as sustainable aviation and marine fuels and waste-to-energy solutions like renewable diesel.
bp Kwinana oil refinery to be converted as fuel import terminal added by oilandgasnews365 reporter on
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