Australia Considers First New Oil Refinery in 60 Years

Australian Prime Minister Anthony Albanese said on Tuesday that the government would consider building the country’s first new oil refinery in more than 60 years as war in the Middle East threatens global fuel supplies and raises the risk of price shocks.

If the project proves feasible, industrial chemical producer Perdaman will build the large-scale refinery in Western Australia. The federal and state governments will jointly provide A$4m ($2.8m) for a feasibility study.

Australia imports about 80% of its fuel. Eight refineries were operating in the country in 2000, but only two remain after high costs and competition from large Asian facilities forced many to close.

An Australian Treasury briefing has also warned that global oil markets have become more vulnerable, with lower inventories and weaker protection against supply shocks.

(Reuters, Max)