Asia/Pacific News
Australia: Geelong Refinery Future in Doubt
The long-term future of Viva Energy's Geelong refinery is in doubt, the company has said.
The viability of the plant is under pressure from weak demand and refining overcapacity in the region.
"We expect refining margins to remain uncertain and challenging as regional and local demand recovers over the remainder of 2020 and 2021," Viva' chief executive Scott Wyatt was quoted as saying by price reporting agency Argus Media.
But Wyatt added that "these operating losses are unsustainable, and we are continually assessing both the short- and long-term viability of this part of our business".
The Australian government is looking to increase oil products' storage in the country and plans have been mooted to build an LNG import terminal next to the 128,000 barrels per day (b/d) plant, according to the report.
But rising refining capacity, in particular from China, is leaving a shadow over smaller units as the 135,000 b/d Marsden Point plant in New Zealand may be converted into an import terminal.
