Newcastle is getting extra fuel storage capacity.
The Federal Government is investing up to $260 million to expand Australia’s diesel storage capacity backing ten projects across the country to boost long-term fuel security.
Through the Boosting Australia’s Diesel Storage program, the ten projects will support around 1,000 new jobs and a 40 per cent increase in Australia’s diesel stockholdings.
The Port of Newcastle will have two projects, the first at the Stolthaven depot at Mayfield North which will see capacity lifted by 126 megalitres, and secondly the Park Fuels facility at Kooragang will be upgraded to carry an additional 30 megalitres.
The other projects include:
– Coogee Chemicals (100 ML, Kwinana WA);
– Park (30 ML, Port Kembla NSW);
– Viva Energy Refining (90 ML, Geelong VIC);
– Terminals (80 ML, Outer Harbor, Adelaide SA);
– Qube Holdings (110 ML, Lumsden Point, Port Hedland WA);
– Qube Holdings (73 ML, Port Kembla NSW)
– Airport Development Group (80 ML, Darwin NT); and
– Ampol Limited (60 ML, Newport VIC).
Minister for Energy and Emissions Reduction Angus Taylor said the grants will increase the volume of diesel stock we keep onshore, create jobs and help keep fuel prices low for consumers.
“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” Minister Taylor said.
“Diesel is vital to Australia’s energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture.”
“Through these grants, along with our support to keep Australia’s refineries operating until at least 2027, the Government is making sure Australian families and industry can access the fuel they need, when they need it.”
“Many of these projects are located in strategic regional locations, which will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas,” Minister Taylor said.
The projects are expected to commence construction from mid-2021 and be completed within three years.
Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.
The Boosting Australia’s Diesel Storage program is a key part of the Government’s comprehensive fuel security package, announced in the 2020-21 Budget, to secure Australia’s long-term fuel
supply by increasing onshore stockholdings and securing our sovereign refining capability that meets our needs during an emergency and into the future.
The program will assist industry in meeting the new minimum stockholding obligation (MSO), which will require industry to hold petrol, jet fuel, and diesel stocks at pre-COVID average levels
from mid-2022. From mid-2024, the MSO will then require a 40 per cent increase in diesel stocks from mid-2024.
Image credit: Angus Taylor MP Facebook