The Australian Government has announced the first step toward investigating a potential new large-scale oil refinery in Western Australia, saying the proposal could strengthen Australia’s fuel security while providing a boost to local manufacturing if it proceeds.
Prime Minister Anthony Albanese and Western Australian Premier Roger Cook announced a jointly funded $4 million pre-feasibility study into a refinery proposed by Perdaman during a visit to the company’s Project Ceres development in Karratha.
According to the Australian Government, the study is the first agreement under the Commonwealth’s $10 million program supporting feasibility studies for new or expanded fuel refining capacity.
If developed, the refinery would be the first new large-scale petrol refinery built in Australia since the 1960s. The Federal Government said the project could create thousands of jobs, support local manufacturing, and improve diesel supply, particularly for regional communities in Western Australia.
The announcement aligns with the Western Australian Government’s Made in WA plan and the Federal Government’s Future Made in Australia agenda.
Australia currently operates two oil refineries, located in Brisbane and Geelong, following the closure of four refineries in previous years.
Prime Minister Anthony Albanese said the government was acting to strengthen Australia’s resilience amid global uncertainty.
“The longer war in the Middle East goes on the greater the impact on Australia will be, and my Government will continue to do everything we can to shield Australia from the worst effects – and set us up for the future,” Albanese said.
“My Government’s working to advance Australia’s interests – not just in this crisis but going forward as well to ensure we can meet future challenges.”
Premier Roger Cook said the proposal formed part of the state’s efforts to rebuild local fuel production capacity.
“Now, as part of my government’s Made in WA plan, I am proud to join the Albanese Labor Government to support Perdaman’s efforts to rebuild our State’s capacity to produce and distribute its own fuel,” Cook said.
He added that locally refined diesel would support regional communities and industries that had faced heightened concerns over fuel supply during recent international conflict.
The pre-feasibility study forms part of the Federal Government’s $15 billion fuel security package, which includes funding for a Fuel and Fertiliser Security Facility, a government-owned fuel reserve focused on diesel and jet fuel, increased minimum fuel stockholding requirements, temporary fuel cost relief measures, and $1 billion in interest-free loans through the National Reconstruction Fund’s Economic Resilience Program to support manufacturing and logistics businesses in critical supply chains.
Minister for Climate Change and Energy Chris Bowen said the proposal reflected the need to strengthen Australia’s domestic refining capability.
“At a time when overseas conflicts demonstrate the fragility of energy supply chains, investing in further onshore sovereign fuel refining capability is a sensible and prudent response to secure our energy security,” Bowen said.
The announcement was made during a visit to Perdaman’s Project Ceres in Karratha, which is expected to produce around 2.3 million tonnes of urea annually once fully operational.
The project has received approximately $475 million in government loans for the facility and supporting infrastructure and is expected to create around 2,500 construction jobs and 200 ongoing positions, while delivering an estimated $8.5 billion in public benefit, according to the Australian Government.
