Lytton refinery facing closure

Ampol’s Lytton oil refinery in Brisbane is facing permanent closure despite a recent federal government proposed A$2.5 billion fuel security package for the refining industry.

The Lytton plant has recorded a A$82 million loss for the September quarter bringing its total losses to A$141 million so far this year.

Ampol chief executive Matt Halliday said the refinery operation will be subjected to a comprehensive review by the June quarter next year. The review will consider a number of options including a complete shutdown and a conversion of the site into a fuel import terminal. It will take account of the government package as well as the potential impact on employees and suppliers.

Mr Halliday told news outlets that Ampol appreciated the intent of the proposed government support package, but the company needed to be realistic about the extreme structural challenges which are facing the Lytton operation.

The news comes as Viva Energy considers a shutdown of its Geelong refinery near Melbourne in Victoria while the other two refiners – BP at Kwinana in Western Australia and ExxonMobil at Altona in Melbourne – have reduced production.

The industry is reeling from the COVID-19 pandemic which has caused precipitous falls in demand for aviation fuel and petrol.

Three Australian refineries have closed in the last decade, increasing the country’s reliance on imported petrol and diesel supplies to meet demand.

Source: Oil & Gas Journal