The Federal Government pledges $250m to oil refineries

Prime Minister Scott Morrison has pledged federal government grants of $125 million each to the Ampol refinery in Lytton and the Viva Energy refinery in Geelong.

The grants will be matched by the two refineries, bringing the total of public and private sector investment in the two communities to $500 million.

Morrison said that the investment is aimed at strengthening domestic fuel production and supply for Australia amidst global uncertainty.

“COVID-19, the Russian war in Ukraine, and trade restrictions have disrupted global supply chains and Australia is not immune.

“Oil refineries literally fuel a stronger economy and these investments will help keep our truckies, miners, defence force and farmers moving across Australia.”

Angus Taylor, Minister for Industry, Energy and Emissions Reduction, said the grants would help create 1250 jobs, safeguard Australia’s fuel security, and ensure cleaner fuel.

“Bringing forward the roll-out of ultra-low sulphur fuel from 2027 to 2024 will deliver significant health benefits for Australians through improved air quality. This is estimated to result in $1.02 billion in avoided health costs.”

The upgrade to Viva Energy’s Geelong refinery will enable the production of Ultra-Low Sulphur Gasoline (ULSG) which improves the quality of petrol produced at the refinery and reduces vehicle emissions.

Scott Wyatt, CEO of Viva Energy, said the company has recently committed to continue refining through to mid-2028 and that they will construct an additional 90ML of diesel storage to improve Victoria’s fuel supply security.

“Our announcement today to substantially upgrade our refinery will improve the quality of petrol produced here in Australia, help reduce vehicle emissions, and improve our processing flexibility. These investments and commitments support local jobs and substantially improve Australia’s energy security as part of the Federal Government’s Fuel Security Package.”

The funding is part of the Government’s fuel security package announced in the 2021-22 Budget.

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