The Federal Government has moved to reassure operators and motorists that fuel supplies will remain stable despite disruptions to petrol production.
Energy Minister, Chris Bowen, said the incident at Viva Energy’s Geelong refinery was “not a positive development” but confirmed contingency measures were already in place to manage impacts.
“This is a setback, but I can assure Australians the government and industry are working very closely together to manage the impacts of this fire and to ensure ongoing fuel security,” said Bowen.
The fire, which began late at night and was extinguished by midday, did not result in any injuries. Initial assessments indicate the main impact will be on petrol and aviation gasoline production, rather than diesel or jet fuel.
Bowen said diesel and jet fuel output had continued at reduced levels as a precaution and was expected to return to normal quickly. Petrol production will be affected, but not halted entirely.
“There will be some impact on petrol production, but it won’t come to an end in Geelong,” he said. “Viva is confident that they will be able to replace the impacted petrol production with imports.”
The refinery produces around seven million litres of petrol per day, although the exact scale of disruption remains under assessment.
To offset supply pressures, the Federal Government has secured additional diesel imports, including two shipments totalling 100 million litres expected to arrive in May under Export Finance Australia arrangements.
“This is a good development and the first of many,” said Bowen said.
“This is exactly what the situation was designed for, to get extra cargos into Australia.”
Bowen also provided an update on fuel availability across the country, noting that shortages at service stations have eased in recent days.
Approximately 1.7 per cent of Australian service stations were without diesel at the time of the update, with Bowen emphasising that “roughly 98 per cent do have diesel.”
He confirmed that the refinery fire would not immediately trigger an escalation of the national fuel emergency plan.
“This in and of itself won’t lead to a change in the status of the four-point fuel plan,” Bowen said. “We’ll continue to monitor the situation.”
Authorities have ruled out sabotage as the cause of the fire, with early indications pointing to equipment failure.
“There’s no evidence of that,” said Bowen. “It appears to have been very accidental … making petrol is a highly dangerous and flammable exercise.”
Bowen added that Australia’s fuel supply remains secured through May, with further updates to be provided as more information becomes available on refinery damage and incoming shipments.
Extracted in full from: https://primemovermag.com.au/fuel-supply-outlook-steadies-for-operators/
