Viva Energy today welcomed the Federal Government’s announcement that it has been successful in securing grant funding to build another 90 million litres of diesel storage at its Geelong Refinery. The government grant, worth up to $33.3 million, will cover up to 50 percent of total eligible expenditure on the project.
This is a significant boost to Australia’s fuel storage capacity under the Federal Government’s Boosting Australia’s Diesel Storage Program. This program aims to create an additional 780 million litres of diesel storage in Australia, boosting the country’s resilience to supply disruptions and protecting consumers and the economy from fuel shortages.
The program is part of the Fuel Security Package (FSP) announced by Energy Minister Angus Taylor in September 2020. These new tanks will be the largest finished product tanks at Geelong Refinery and will help support the Federal Government’s Minimum Stockholding Obligations requirement under the FSP.
The project to build the tanks remains subject to final approval and confirmation of the grant terms and agreement, but construction could begin as early as Q1 2022.
Viva Energy currently supplies over 220 million litres of diesel per month to Victoria and surrounding states via Geelong Refinery from both refined and imported product. Diesel is a critical fuel for the agricultural, mining and transport segments as well as for emergency management.
Viva Energy’s Executive General Manager, Refining, Dale Cooper, said the new tanks will be critical in maintaining the supply of diesel into Victoria, particularly following the closure of the refinery in Altona.
“These new tanks will increase our storage at Geelong, which will allow far more flexibility to manage supply, resulting in greater fuel security for Victoria and improved production levels at the Refinery,” Mr Cooper said.
“This is great news as our Refinery prepares for the next phase of its future, where it will be playing a key role in Australia’s strategic fuel storage, delivering cleaner, low-sulphur fuels and forming an important part of Viva Energy’s Geelong Energy Hub.”
About Viva Energy
Viva Energy (ASX: VEA) is one of Australia’s leading energy companies and supplies approximately a quarter of the country’s liquid fuel requirements. It is the exclusive supplier of high-quality Shell fuels and lubricants in Australia through an extensive network of more than 1,330 service stations across the country.
Viva Energy owns and operates the strategically located Geelong Refinery in Victoria, and operates bulk fuels, aviation, bitumen, marine, chemicals and lubricants businesses supported by more than 20 terminals and 55 airports and airfields across the country.