Asia/Pacific News
BP to Close Australian Refinery
BP will close its Bulwer Island refinery in Brisbane, Australia by the middle of next year, citing competition from big new Asian refineries, Reuters reports.
Australian refineries operated by BP, Royal Dutch Shell, ExxonMobil, and Caltex have experienced difficult conditions in recent years due to rising fuel quality standards, a high Australian dollar, and the rise of the Asian "mega-refineries."
BP said stopping the 102,000 barrel-per-day (bpd) refinery's operations was preferable to upgrading the facility, but it may convert it into an import terminal.
"We have concluded that the best option for strengthening BP's long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries," said Andy Holmes, president of BP Australasia.
BP now has 380 employees and 300 contractors working at the refinery, which produces petrol, diesel, kerosene, aviation fuel, heating oil, and liquefied petroleum gas (LPG).
BP said another 146,000 bpd refinery at Kwinana on Australia's West Coast remains a "big part" of its growth strategy in the region.
Shell announced in February that it was selling its downstream Australian business, including its Geelong Refinery, to the Vitol Group.
