Australia to boost diesel security with 10 new storage projects

Quantum Commodity Intelligence – Australia's government is to supply A$260 million (USD $195 million) to boost Australia's diesel storage facilities and inventory levels, the government announced Thursday.

The move comes as Australia becomes ever-more reliant on oil imports following a decade-long program of refinery closure, leaving the country with just two operating plants.

The funding will be used for the construction and upgrade of 10 strategic locations, as Australia plans to boost diesel inventories to around 5 million barrels.

Australia is heavily reliant on diesel in a number of key sectors.

"Diesel is vital to Australia's energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture," said Minister for Energy and Emissions Reduction Angus Taylor.

The grants will cover up to 50% of the cost, which includes key locations such as Newcastle, Kwinana and Geelong.

Australia's last two operational refineries are to receive government support in a bid to keep the plants in business for at least the next six years, the government announced earlier this year. 

As part of the deal, Ampol's Lytton refinery and Viva's Geelong plant will remain operational until at least mid-2027, in a move to guarantee energy security.

Lytton has a refining capacity of around 105,000 barrels per day and Geelong around 130,000 bpd.