PERTH (miningweekly.com) – Federal Energy and Emissions Reduction Minister Angus Taylor has labelled energy major ExxonMobil’s decision to close its Altona refinery, in Victoria, as "extremely disappointing".
The company this week announced plans to close Australia’s smallest refinery, following an extensive review of the operation, which considered the competitive supply of products into Australia, declining domestic crude oil production, future capital investments and the impacts of these factors on operating earnings.
“We are grateful for the tremendous efforts by our employees to improve the viability of the operation,” said ExxonMobil Australia chairperson Nathan Fay.
“We extend our thanks to the federal government for the significant support offered to Altona and other refineries. Our decision to convert our facility to a terminal is not a reflection of those efforts.”
He noted that the Altona refinery would remain in operation while transition work is undertaken to ensure continued reliable fuel supply for its Mobil customers.
The refinery employs around 300 staff members, and Taylor said that ExxonMobil would be expected to provide "whatever support is required" to assist workers and the community "during this difficult time".
“ExxonMobil has made clear that the impacts of Covid-19, declining crude production and other commercial factors have significantly impacted their earnings, leading to [this] decision.
“The Altona refinery has been operating since 1949 and is Australia’s smallest refinery. The refinery will be converted into an import terminal. Its closure will not negatively impact Australian fuel stockholdings,” Taylor said.
“The government is providing support to the sector through the JobKeeper programme to maintain operations and support jobs. ExxonMobil acknowledged the significant support provided to Altona and the entire refining sector by the Australian government.”
Taylor said that the comprehensive fuel security package, announced as part of the 2020/21 Budget, would continue to progress and would enhance Australia’s long-term fuel security.
“This package will see an increase to Australia’s onshore diesel stocks and protect motorists and industry from future higher fuel prices. The government will continue to work with the sector to support Australia’s refining capability and fuel security, which will support our farmers, miners and truckies into the future.”