Viva Energy will share in a $260 million plan to expand Australia’s diesel storage capacity to boost long-term fuel security, create jobs and keep prices low.
Senator for Victoria Sarah Henderson said the Morrison Government’s Boosting Australia’s Diesel Storage program will fund ten projects across the country which will support around 1,000 new jobs and a 40 per cent increase in Australia’s diesel stockholdings.
“Diesel is crucial to Australia’s energy security as it underpins our critical infrastructure, transport sector, mining and agriculture. It is also critical during an emergency for essential services,” Senator Henderson said.
“The Morrison Government is investing in initiatives to keep Australia’s refineries operating to ensure Australian families and industry can access the fuel they need, when they need it, with Viva Energy playing a central role.”
“The 90 mega litre expansion of Viva Energy’s diesel storage at Geelong Refinery will ensure that local truckies, tradies, farmers and commuters have access to the reliable fuel they need, while boosting employment through an expected 80 new jobs.”
“This is a very significant win for Geelong manufacturing jobs.”
“The project will also help secure the sovereign fuel stocks we need while continuing support for Australia’s refineries.”
Minister for Energy and Emissions Reduction Angus Taylor said the grants will increase the volume of diesel stock we can keep onshore, create jobs and help keep fuel prices low for consumers.
“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” Minister Taylor said.
“Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector,” Minister
The Boosting Australia’s Diesel Storage program is a key part of the Government’s comprehensive fuel security package, announced in the 2020-21 Budget, to secure Australia’s long-term fuel supply by increasing onshore stockholdings and our sovereign refining capability that meets our needs during an emergency and into the future.
The program will assist industry in meeting the new minimum stockholding obligation (MSO), which will require industry to hold petrol, jet fuel, and diesel stocks at or above pre-COVID national average levels from mid-2022. From mid-2024, the MSO will require importers to hold a 40 per cent increase in diesel stocks.
These grants will cover up to 50 per cent of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.
ENDS
Minister Taylor’s office – Annabel Clunies-Ross, 0428 295 517
Senator Henderson – Anna Hindson, 0490 441 554