Geelong Refinery to Restore 90 Pct of Transport Fuel Production in Weeks

Viva Energy Group Ltd expects to raise the production level for transportation fuels at its fire-hit Geelong Refinery in the Australian state of Victoria to over 90 percent of capacity in a "few weeks".

"Most major processing units are unaffected by the fire", the operator said in an online statement. "Following the incident, the Geelong Refinery expects to be producing diesel and jet fuel at approximately 80 percent of capacity and petrol at approximately 60 percent.

"The Company has sufficient fuel stocks to cover this reduced production and expects to maintain normal fuel supply following this incident.

"Over the next few weeks, and subject to plant inspection, the Company expects to be in a position to lift production of diesel, jet fuel and petrol to over 90 percent of capacity".

Chief executive Scott Wyatt said the company is committed to investigating what caused the blaze.

The fire hit the refinery, reportedly one of only two active in Australia, on the evening of April 15. Fire Rescue Victoria extinguished the fire just past noon the following day, as reported by the agency. The fire authorities and the operator have reported no casualties.

With a processing capacity of 120,000 barrels of oil per day, the Geelong Refinery supplies over 50 percent of Victoria’s and 10 percent of Australia's fuel, according to Melbourne-based Viva. The refinery, put into service 1954, produces petrol, diesel, liquefied petroleum gas, jet fuel, aviation gasoline and low aromatic fuel, according to Viva.

“The whole Viva Energy team understands how important our refinery is to the energy security of the country, especially at the current time", Wyatt said Monday.

"We will progressively restore production once we are confident that it is safe to do so, and do not expect any disruptions to fuel availability or price increases for Viva Energy's customers as a result of this incident".

Under the government's new Strategic Reserve powers, Export Finance Australia (EFA), the government's export credit agency, is supporting Viva and other fuel suppliers to procure - according to the prime minister's office - over 570,000 barrels of diesel.

On Wednesday the office of Prime Minister Anthony Albanese said the government has secured about 300 million liters or 1.8 million barrels of diesel over the last 7 days, in partnership with Viva and BP Australia.

"Work continues with Ampol, Park Fuels, IOR and other fuel suppliers, to secure additional fuel shipments in coming days and weeks", Albanese's office said in an online statement.

According to the latest estimation by the energy department, as of April 14, Australia's stocks of gasoline, kerosene and diesel would last 46 days, 30 days and 31 days respectively.

To contact the author, email jov.onsat@rigzone.com