PERTH (miningweekly.com) – The Australian government on Friday announced plans to increase Australia’s onshore diesel stockholdings, create jobs and keep fuel prices low for consumers.
Energy and Emissions Reduction Minister Angus Taylor said that the Boosting Australia’s Diesel Storage programme would open on January 11, forming a key part of the government’s fuel security package that is aimed at ensuring Australia’s long-term fuel supply and to bolster local industry.
The package will include backing the local refining sector through a production payment that values the fuel security benefits provided by a sovereign refining capability, and creating a minimum stockholding obligation for key transport fuels.
“Our plan will create new jobs and protect workers in fuel-dependent industries, including manufacturing, resources, agriculture and transport,” Taylor said, adding that Australia’s fuel security was essential for the country’s national security and underpinned its entire economy.
“The government will oversee the roll-out of the diesel programme this year, which will not only create jobs, but will help to make sure Australian families and businesses can access the fuel they need, when they need it,” he said.
“Fuel, and diesel in particular, is the lifeblood of so many sectors in our economy, including our farmers, truckies and tradies. It is essential that we get the right balance and location of our onshore stockholdings.
“Increasing Australia’s capacity to store diesel complements our other fuel security measures. This will strengthen our ability to manage potential disruptions, protect Australian motorists from future high prices, and keep our economy moving.”
Through the Boosting Australia’s Diesel Storage programme, the government will provide up to A$200-million in competitive grants over three years to support the construction of an additional 780 megalitres of onshore diesel storage.
These projects will help to further enhance Australia’s fuel security and create around 1 000 jobs, supporting the government’s JobMaker Plan as the nation recovers from Covid-19.
Successful projects will receive grants of up to A$33.3-million, with the government covering up to 50% of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.
Taylor said that the government was looking to target projects that enhance fuel security by being in a strategic regional location or that are connected to existing fuel infrastructure.
The programme will also assist industry in meeting the new minimum stockholding obligation by 2024. The obligation will require industry to hold around 40% more diesel than current levels.
“Diesel is crucial to Australia’s energy security as it underpins our critical infrastructure, transport sector and important industries, such as mining and agriculture. It is also critical during an emergency for essential services.
“The government is committed to building up our domestic fuel capability to ensure it is appropriate for Australia’s future needs,” he said.