BP said it would wind down operations at its 146,000-bpd Kwinana refinery over the next six months before eventually turning it into a fuel import facility. Located in Western Australia, Kwinana is the biggest among four refineries in the country. The repurposing is expected to affect about 650 jobs. Other refiners are expected to follow BP’s move. Ampol and Viva Energy have flagged that they were considering closing down their refineries due to deepening loss. Exxon runs the smallest and oldest refinery in Australia.
The closure will come as a blow to the Australian government, which planned efforts to strengthen the country’s energy security. The government has prepared AUD2.3 billion ($1.6 billion) incentives to support the four refiners. Analysts said that Australian refiners are under pressure from new facilities in the Asia Pacific, which are expected to create overcapacities of 7 million to 8 million bpd in the region.
OneLiner: BP To Stop Crude Processing At Kwinana Refinery In Australia
