Kurnell shuts as refinery to become fuel import terminal

Caltex Australia Ltd.’s 135,000-b/d Kurnell refinery at Sydney has now become Australia’s largest fuel import terminal following the closure of refinery operations this week.

The refining infrastructure at the site is to be dismantled during the next few years.

The last refining units were shut down as Caltex reached a milestone on its way to converting the site to a fuel terminal. Cost of the conversion is $270 million (Aus.).

The terminal will provide 750 million l. of storage capacity and supply fuel to retail outlets and commercial customers in New South Wales and the Australian Capital Territory, which surrounds Canberra.

Caltex says the conversion of Kurnell marks the company’s transformation from two businesses (refining and marketing) into one integrated transport fuel supply chain company.

Kurnell, built in 1956, previously employed 430 people. The fuel import mode employs 45 people.

Australia’s refineries have been steadily decreasing in number. BP’s Brisbane facility is the next to go in 2015.

That means Australia will supply just one third of its own fuel, relying on imports for the remainder.