News

$260 million invested into fuel security

fuel

The Australian Government has announced $260 million in funding to expand Australia’s diesel storage capacity, in an effort to boost long-term fuel security.

Ten projects will be supported through the Boosting Australia’s Diesel Storage program in efforts to increase the volume of diesel kept onshore:

  • Stolthaven Australia (126 ML, Newcastle NSW);
  • Coogee Chemicals (100 ML, Kwinana WA);
  • Park (30 ML, Port Kembla NSW);
  • Park (30 ML, Newcastle NSW)
  • Viva Energy Refining (90 ML, Geelong VIC);
  • Terminals (80 ML, Outer Harbor, Adelaide SA);
  • Qube Holdings (110 ML, Lumsden Point, Port Hedland WA);
  • Qube Holdings (73 ML, Port Kembla NSW)
  • Airport Development Group (80 ML, Darwin NT); and
  • Ampol Limited (60 ML, Newport VIC).

This is expected to increase Australia’s diesel stockholdings by 40 per cent.

Minister for Energy and Emissions Reduction Angus Taylor said the grants will increase the volume of diesel stock we can keep in Australia, while also creating jobs and helping to keep fuel prices lower.

“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” Taylor said.

“Diesel is vital to Australia’s energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries such as mining and agriculture.

“Many of these projects are located in strategic regional locations, which will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas.”

Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.

The Boosting Australia’s Diesel Storage program is a key part of the Government’s fuel security package announced in the 2020-21 Budget.

The program will assist industry in meeting the new minimum stockholding obligation (MSO), which will require industry to hold petrol, jet fuel and diesel stocks at or above pre-Covid national average levels from mid-2022. From mid-2024, the MSO will require importers to hold a 40 per cent increase in diesel stocks.

These grants will cover up to 50 per cent of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published.

© All Rights Reserved. All content published on this site is the property of Prime Creative Media. Unauthorised reproduction is prohibited

JOIN OUR NEWSLETTER

JOIN OUR NEWSLETTER
Close