Australia Weighs First New Oil Refinery in Sixty Years

The project surfaces as the government grapples with persistent supply vulnerabilities. Despite being a major producer of natural gas and LNG, the country imports the vast majority of its gasoline and diesel. Recent logistical pressures, exacerbated by the Hormuz crisis and a damaging fire at one of the nation’s two existing refineries, exposed the fragility of this model. The resulting price spikes forced federal intervention in March, including a temporary halving of fuel excise duties to ease the burden on motorists.

To stabilize the market, the government utilized new Strategic Reserve powers in April, sourcing 100 million liters of diesel from Brunei and South Korea, followed by jet fuel shipments from China. While these emergency measures provided temporary relief, the recurring supply gaps have pushed domestic refining back onto the policy agenda. Albanese emphasized that the proposed site must prove economically viable before moving forward, balancing long-term national resilience against the government’s broader shift toward renewable energy sources like wind and solar.