New oil refinery set for Gladstone

By Courtney Pearson

May 28, 2015

THE first Australian oil refinery in 50 years is being planned for Gladstone.

The US$700 million oil refinery will be built on a 120-hectare site and with the capacity to process up to 43,000 barrels per day of crude oil into high quality, ultra low-sulphur diesel and premium gasoline.

The refinery will be built in joint venture by US-based Eagle Ford Oil and Gas and Australian company Casper Energy.

“In 2014, imported liquid fuels accounted for approximately 60 per cent of all liquid fuels consumed in Australia,” the joint venture stated.

Australia is soon expected to have only four of eight original oil refineries with a combined capacity of 490,000bpd, despite demand for more than 1.25 million barrels per day, according to the companies.

“The Gladstone Refinery will add volume to the declining Australian domestic industry and contribute to fuel security and pricing competitiveness against the risk of the refined fuel sector swinging toward being increasingly dependent on fuel imports,” the joint venture stated.

The project’s construction phase is expected to generate up to 1000 jobs. Once operational, it will provide about 300 permanent jobs for the area.

The refinery is expected to take four years to complete, while the finalisation and approval process will take 18 months.