Refinery in national diesel plan

VIVA Energy’s Geelong refinery has been included in a Federal Government scheme to boost the nation’s diesel fuel stockpile.

As part of the plan the

Known as the Boosting Australia’s Diesel Storage program, the project could create up to 1000 new jobs across Australia as part of a 40 per cent increase in the nation’s diesel storage.

Victorian Senator Sarah Henderson said diesel supply is crucial to the country’s energy security and plays a part in infrastructure, and the transport, mining, agriculture and essential services sectors.

“The 90-megalitre expansion of Viva Energy’s diesel storage at Geelong Refinery will ensure that local truckies, tradies, farmers and commuters have access to the reliable fuel they need, while boosting employment through an expected 80 new jobs,” she said.

“This is a very significant win for Geelong manufacturing jobs.

“The project will also help secure the sovereign fuel stocks we need while continuing support for Australia’s refineries.”

The Boosting Australia’s Diesel Storage program is part of Federal Government’s fuel security package announced in the 2020-21 Budget.

From mid-2022, industry will be required to meet new minimum stockholding obligations for petrol, jet fuel, and diesel stocks at or above pre-COVID national averages.

As of mid-2024 the MSO will increase again, requiring importers to hold 40 per cent more diesel stocks.

The available grants are set to cover up to 50 per cent of total eligible project expenditure ahead of the anticipated commencement in mid-2021.

Minister for Energy and Emissions Reduction Angus Taylor said the grants will increase the onshore diesel stock which will help keep fuel prices low.

“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” he said.

“Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.”