Majority of fuel production at Viva Energy oil refinery stable after major fire: Albanese

The majority of diesel, petrol and aviation fuel production at the Viva Energy oil refinery will not be impacted, Anthony Albanese has declared, after a catastrophic fire broke out at the facility.

“80 per cent of diesel production is continuing – 80 per cent of aviation fuel is continuing, ongoing,” the Prime Minister said during a press conference at the Geelong refinery site.

”It has been slowed down just slightly because of the circumstances which are there, but 60 per cent of petrol production proceeding today as well.”

The facility is located in Corio near Geelong and is one of Australia’s two remaining oil refineries.

It has the ability to process up to 120,000 barrels of oil per day and contributes 10 per cent to the national fuel stockpile.

It also provides Victoria with more than 50 per cent of its fuel supply.

The fire broke out on Wednesday evening after reports of multiple explosions, but had been extinguished by Thursday afternoon.

A mechanical fault is suspected to be the cause.

But Mr Albanese ruled out the possibility of the incident pushing Australians into fuel rationing and the third stage of the National Fuel Security Plan.

“The event here will not lead to any change. We’ll give an update tomorrow about fuel supplies that are on hand. Fuel is continuing to come in,” he said.

“The government’s put in place the four stages, in order to plan and in order to prepare, for circumstances which are predominantly impacted by global events, not by events here.”

Mr Albanese arrived at the site on Friday morning after cutting short a fuel diplomacy trip to Asia. He had been visiting Malaysia as part of diplomatic efforts to shore up Australia’s fuel and fertiliser supply.

The two countries struck an energy supply pledge, with Malaysia’s state-owned energy giant Petronas committing to prioritise supplying excess fuel to Australia, after domestic needs are met. In exchange, Australia will continue the flow of minerals and liquefied natural gas (LNG) to Malaysia.

Shortly after, Mr Albanese announced the first of many expected shipments secured under the government’s new strategic reserve powers.

“The purchase of more than 570,000 barrels of additional diesel has been done by Viva (Energy), made possible because of the decision that my government made early in this global crisis to empower Export Finance Australia,” he said.

The deal with Malaysia follows similar deals struck with Brunei and Singapore, committing to keeping trade flows of fuel, gas, fertiliser and food open, despite uncertainty triggered by the war in the Middle East.

More to come