In Short:
– A fire at Viva Energy’s Geelong refinery has disrupted fuel production and raised energy security concerns in Australia.
– The incident will impact petrol production significantly, with plans to manage losses through imports.
A fire at Viva Energy‘s Geelong refinery has disrupted fuel production in Australia, raising concerns about energy security amid a strained global oil market.
The incident occurred around 11 p.m. on Wednesday, April 15, in Corio, Victoria, involving explosions and flames due to an equipment failure and hydrocarbon leak.
Fire wipes out key equipment at Geelong oil refinery.
Fuel production impact
The refinery processes approximately 120,000 barrels of oil daily, supplying 50 percent of Victoria’s fuel and 10 percent of Australia’s total demand.
Viva Energy indicated that production of gasoline and aviation fuel would be affected, with plans to cover losses through imports.
Geelong Energy Hub – Viva Energy Australia
Federal Minister Chris Bowen confirmed that petrol production would be hit most, while diesel and jet fuel would continue at reduced levels.
Bowen stated that petrol production might remain compromised for an extended duration.
The fire has temporarily halted domestic jet fuel production, impacting airlines such as Qantas, Jetstar, and Virgin Australia.
Prime Minister @AlboMP has just arrived at the VIVA refinery in Geelong – after flying in from Malaysia overnight. He’s meeting company officials for an update on the facility following this week’s fire pic.twitter.com/Hnbk9f9SEJ
Australia relies on imports for about 80 percent of its fuel needs, exacerbating supply issues due to geopolitical tensions.
Bowen recently reported fuel reserves of 38 days for petrol, 31 days for diesel, and 28 days for jet fuel.
Viva Energy’s CEO Scott Wyatt confirmed that other refinery operations remain ongoing at minimal levels for safety.
Craig Kenna from the Australian Manufacturing Workers Union warned that the setback could lead to prolonged shutdowns, straining Australia’s other operational refinery.