Queensland unlocks six port sites for fuel storage and refining in supply chain security push

Queensland unlocks six port sites for fuel storage and refining in supply chain security push

Photo: Jesse Donoghoe via Unsplash

The Queensland Government has opened six parcels of government-owned land near major ports to expressions of interest from industry proponents looking to build fuel refining and storage infrastructure, in a bid to shield the state from global supply chain shocks.

The sites span ports at Brisbane, Townsville, Mackay, Gladstone, Abbot Point and Bundaberg, with the state's Coordinator-General now inviting proposals under a new Accelerating Fuel Infrastructure Program.

The initiative forms a central plank of Queensland's broader Fuel Security Plan, which aims to boost domestic capacity to drill, refine and store fuel rather than rely on international supply lines.

No dollar figure has been attached to the port-sites program itself, and the government has not set a public timeline for when proposals will be assessed or facilities could become operational.

The program sits alongside a $25 million state investment to produce renewable diesel at Ampol's Lytton refinery in Brisbane, funded as the first project under the $180.6 million Sovereign Industry Development Fund.

That project is expected to deliver 20 million litres of renewable diesel per year from 2028, with a pathway to 750 million litres of sustainable aviation fuel and renewable diesel by the early 2030s.

Queensland is also pushing the federal government to fast-track Environment Protection and Biodiversity Conservation Act (EPBC) approvals for the Taroom Trough oil province in the Surat Basin, where Shell is already producing around 200 barrels of crude per day.

The state government has described the province's reserves as potentially running to hundreds of millions of barrels, though no independently verified estimate has been published.

“We must restore our ability to drill, refine and store fuel right here in Queensland, so we are never again left at the mercy of global supply chains,” says Queensland Premier David Crisafulli.

“More storage and refining fuel locally means it’s easier for families to fill up and small businesses to stay afloat amidst rising national cost pressures.  

“We have a plan across the short, medium and long-term to get projects moving to produce oil, refine it and store fuel locally, as well as deliver relief and fight for Queenslanders receiving the most accurate information available.” 

Deputy Premier and Minister for State Development Jarrod Bleijie says the co-ordinated, cross-agency initiative aims to ensure "swift action" to address the fuel crisis.  

“Striking oil in the Taroom Trough is just one piece of the puzzle and being able to refine and store more fuel locally will further strengthen our sovereign capability,” says Bleijie.

“We’re playing our part by unlocking the land these facilities will be built on, as well as providing the fastest pathway possible to getting them going - now we’re asking the Federal Government to play their part on the EPBC."

Queensland Coordinator-General Gerard Coggan says the Accelerating Fuel Infrastructure Program gives industry a direct pathway to pitch projects on state-owned land near existing port infrastructure.

“We’re working closely with proponents to navigate assessment and approval processes efficiently,” says Coggan. 

Australian Institute of Petroleum CEO Malcolm Roberts has welcomed the framework, saying it shores up confidence for the industry and motorists.

“Recent events have shown storage is a key part of ensuring there’s adequate fuel supply and confidence in the market when global supply chains are disrupted,” says Roberts.

“Opportunities to expand the nation’s fuel capacity, as well as capability, and allow a fast and efficient pathway to get it done is a welcome move."

The six port locations were selected for their proximity to existing logistics infrastructure, deep-water access and established industrial precincts, giving proponents a head start on planning and approvals.

Townsville, the northernmost site, would extend fuel storage capacity into a region heavily exposed to cyclone-related supply disruptions, while Brisbane and Gladstone offer connections to the state's largest population and industrial centres respectively.

Queensland's fuel security push comes as Australia continues to import the vast majority of its refined fuel, with the closure of multiple domestic refineries over the past two decades leaving the country with limited onshore refining capacity and storage reserves measured in weeks rather than months.

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