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Major Pilbara Oil Refinery Project Being Considered with $4m Govt Study
The $4 million study is part of a $15 billion fuel-security package as Australia weighs its first new refinery in decades.
On Tuesday, Prime Minister Anthony Albanese and Western Australia Premier Roger Cook announced a $4 million feasibility study for a new oil refinery in Karratha, proposed by Perth-headquartered Perdaman to bolster national fuel security.
Australia currently relies on imports for about 80% of its fuel, with only two domestic refineries remaining in Brisbane and Geelong; ongoing conflict in the Middle East has tightened global supplies, increasing urgency for energy resilience.
This study is the first agreement signed under the Albanese Government's $10 million fund; Defence Consultant John Blackburn warned the facility would take "seven to ten years to get up and running."
Energy Minister Chris Bowen stated that investing in onshore refining is "sensible and prudent," aiming to secure essential diesel supplies for regional communities in Western Australia that drive the state's economy.
Nationals Leader Matt Canavan argued the refinery remains pointless unless the government scraps net zero policies, such as the Safeguard Mechanism, telling News24 that removing carbon taxes is essential for viability.