The Australian government has selected ten projects that will benefit from up to A$260 million (€161.4 million) in funding to expand onshore diesel storage capacity and ensure fuel security.
The government said it would launch a competitive grants programme to build 780 million L (4.9 million bbl) of onshore diesel storage as part of the fuel security package in its 2020-21 budget announced in September 2020. The Boosting Australia’s Diesel Storage programme will increase the country’s diesel stockholdings by 40% and will help the industry to meet the new minimum stockholding obligation (MSO), which requires petrol, jet fuel, and diesel stocks to be held at or above pre-COVID-19 levels from mid-2022 onwards.
The grants will cover up to 50% of the total eligible project expenditure. The ten projects will support around 1,000 new jobs. The projects that have won funding are: –
- Stolthaven Australia (126 million L, Newcastle, New South Wales)
- Coogee Chemicals (100 million L, Kwinana, Western Australia)
- Park (30 million L, Port Kembla, New South Wales)
- Park (30 million L, Newcastle, New South Wales)
- Viva Energy Refining (90 million L, Geelong, Victoria)
- Terminals (80 million L, Outer Harbor, Adelaide, South Australia)
- Qube Holdings (110 million L, Lumsden Point, Port Hedland, Western Australia)
- Qube Holdings (73 million L, Port Kembla, New South Wales)
- Airport Development Group (80 million L, Darwin, Northern Territory)
- Ampol Limited (60 million L, Newport, Victoria)
Stolthaven says in a statement: ‘Leading bulk liquid storage provider Stolthaven welcomes today’s announcement by the Federal Government confirming the success of Stolthaven Newcastle terminal in the Boosting Australia’s Diesel Storage Program (BADSP) tender process. We are pleased to be able to support the government’s commitment to improving fuel security through investment in additional infrastructure. Stolthaven will now work with the department to develop and deliver against a grant agreement.’
Dale Cooper, executive general manager, refining, at Viva Energy, which plans to develop an energy hub at its Geelong refinery, including an LNG regasification terminal, says that the new tanks will be critical to maintain Victoria’s diesel supplies, particularly following the closure of ExxonMobil’s refinery in Altona.
‘These new tanks will increase our storage at Geelong, which will allow far more flexibility to manage supply, resulting in greater fuel security for Victoria and improved production levels at the refinery,’ says Cooper. ‘This is great news as our refinery prepares for the next phase of its future, where it will be playing a key role in Australia’s strategic fuel storage, delivering cleaner, low-sulphur fuels and forming an important part of Viva Energy’s Geelong Energy Hub.’
All the successful projects are expected to commence construction in 2021 and will be completed within three years.