Australia funds study for new oil refinery in 60 years

The Australian government will fund a study to determine the feasibility of building the country's first major new oil refinery in over sixty years, aiming to bolster national fuel security amid ongoing global supply disruptions. Prime Minister Anthony Albanese and Western Australian Premier Roger Cook announced the $4 million joint federal-state study on July 28 during a visit to Karratha, in Western Australia’s resource-rich Pilbara region. The proposed refinery would be constructed and operated by the industrial and chemical producer Perdaman Group.

The project is a direct response to the prolonged war in the Middle East, which has tightened global fuel supplies and caused price volatility, highlighting Australia’s reliance on imported fuels. The nation currently has only two operating oil refineries, located in Brisbane and Geelong, which together supply less than one-fifth of domestic fuel needs. Officials said the prospective refinery in Karratha would focus on increasing domestic production, particularly of diesel for regional communities in Western Australia, and could create thousands of local jobs.

The announced study is the first agreement under a $10 million federal...