Asia/Pacific News
Australian Supplier Promises No Disruption in Fuel
Caltex [ASX:CTX] says the closure of two Australian refineries will not jeopardise fuel supply in the nation, Australian television station Sky News reports.
Caltex said the closures will mean Australia, already a large importer of fuel products, will have to bring in more fuel from other countries.
"The closure of Kurnell (Caltex) and Clyde (Shell) will add another 200,000 barrels a day to be imported but that is low volume compared to total refining capability globally," said Caltex Chief Executive Julian Segal.
Five refineries are now operating in Australia, and analysts say it is unlikely they will all stay open.
Morningstar equities analyst Mark Taylor said Australia's small refineries can't compete with the more advanced Asian plants, but he said it should concern Australians that they are increasingly reliant on imports and exposed to instability in the Middle East.
However, Taylor said Australia's potential for natural gas production could help offset the lack of oil refineries if cars and trucks are made to run on that fuel.
Caltex has said it is working to change its image to focus on its fuel distribution network rather than its refinery capacity.
