Anthony Albanese has announced a $4m study into the potential construction of a large-scale oil refinery in Western Australia, as the federal government moves to bolster the nation’s fuel security.
The Prime Minister travelled to Karratha on Monday with WA Premier Roger Cook to reveal the pre-feasibility study, which will examine the option of building what would become the country’s third oil refinery. The refinery would be jointly funded by the Cook Labor government and built by chemical and fertiliser company Perdaman.
“This is an extraordinary project and an example of what Australia can achieve with vision, with optimism, with working between government and the private sector,” Mr Albanese said.
“This is going to generate billions and billions of dollars going forward but through employment economic activities through agriculture.”
The proposal is the first agreement struck under the Labor government’s $10m strategy aimed at expanding fuel refining capacity. Mr Albanese said the move would help “build our resilience as a nation” and “set us up for the future”.
He also used the announcement to attack former Coalition governments over refinery closures.
“It would be better if the Coalition had never been elected,” he said.
“Maybe if that had happened, they wouldn’t have sent manufacturing offshore.”
Cook said he was proud to support a proposal focused on prioritising “getting fuel in bowsers” for Western Australians.
“We are doing everything were can to address these concerns by working with the commonwealth to provide steady and experienced leadership and continue delivering our Made in WA plan,” he said.
“This includes diesel to support the regional communities which drive WA’s economy and which have been most at risk amid this conflict.”
If built, the refinery would sit alongside the existing facilities in Geelong and Brisbane and would be the first new addition in 60 years.
Resources Minister Madeleine King said Perdaman had a strong record.
“The thing about Perdaman is they have proven themselves to get things done,” she said.
“For a company like Perdaman to come to government and say we’re going to look at this … it’s got to have some strength behind it, and I believe it has.”
Foreign Affairs Minister Penny Wong backed the push, saying Australia needed local answers to possible fuel shortages and that the announcement would support “a return to refinery capacity in Australia”.
“We need to look at what we can do here in Australia to shore up our resilience,” she said.
“I know the Prime Minister will be making announcements today about our intention to try and support a return to refinery capacity in Australia.”
Treasurer Jim Chalmers said Australians had already paid “too hefty a price” because of the economic fallout from the continuing Middle East conflict.
“The longer this drags out the more serious the consequences for inflation and growth here and around the world,” he said.
“From an economic point of view, a proper and permanent end to the war can’t come soon enough.”
Opposition MPs also expressed support for the project, while raising concerns about its viability.
Nationals leader Matt Canavan said he welcomed the plan but argued Labor’s carbon tax would hurt the project’s economics.
“I’d love to see a new oil refinery built, but to do that we’ve got to get rid of Labor’s carbon taxes,” he told News24 on Monday.
“We’re not going to get a new oil refinery in this country while this government imposes a massive carbon tax on existing refineries and new ones would be subject to the same.”
Canavan and Opposition Leader Angus Taylor are due to travel to the Stanwell power station in Rockhampton on Tuesday.
Opposition foreign affairs spokesman Ted O’Brien said the announcement should have happened sooner and said it clashed with Energy Minister Chris Bowen’s broader fossil fuel stance.
“On one hand, you’ve got Chris Bowen, the Energy Minister, on the world stage saying no more fossil fuels,” he said.
“And then you’ve got the Prime Minister of Australia saying we need more fossil fuels.
“The contradiction in Labor’s energy policy explains why Australians are paying higher prices for energy than they ever have and why energy markets are now pulling back investments from Australia.”
Energy Minister Chris Bowen described the project as a “sensible and prudent response to secure our energy security.”
“Our Government will continue to work hard to ensure fuel supply remains secure now, while working with all states and territories to build a more sovereign and secure energy system for our country for decades to come.”
