Fire at Geelong Oil Refinery Raises Fuel Security Questions

A significant fire at the Viva Energy oil refinery in Geelong, Victoria, has led to a reduction in fuel production capacity, prompting a large-scale emergency response. The fire, which began on Wednesday night and burned for approximately 13 hours, was extinguished on Thursday afternoon. No injuries were reported. An investigation into the cause is ongoing, with authorities stating it is not considered suspicious.

Incident Timeline and Emergency Response

• Start: The fire was reported at approximately 11:00 PM on Wednesday, April 10, at the refinery in Corio, Geelong. Fire Rescue Victoria stated the dispatch followed multiple calls reporting explosions and flames.
• Response: Approximately 50 firefighters and 10 firefighting vehicles responded. Fire Rescue Victoria described the blaze as "large and intense," with flames reported to have reached up to 60 meters in height at times. The fire was contained to an area of about 30 meters by 30 meters.
• Public Safety: A wind change early Thursday morning blew smoke towards the greater Geelong area. The Country Fire Authority issued a "Watch and Act" alert for dozens of suburbs, advising residents to shelter indoors. Authorities later stated there was no ongoing threat to the public.
• Extinguishment: The fire was extinguished by midday on Thursday, approximately 13 hours after it began.

Cause and Investigation

Authorities have stated the fire was caused by an equipment failure that led to a significant leak of liquid hydrocarbons and gases, which then ignited.

• Viva Energy's preliminary assessment indicates a faulty mechanical part in the facility's mogas alkylation plant was responsible for the gas leak.
• The exact ignition source and full circumstances are under investigation by safety regulators. Authorities have stated the fire is not believed to be suspicious.

Impact on Refinery Operations and Fuel Supply

The fire has impacted the refinery's production capacity, though the facility continues to operate at reduced rates.

• Production Impact: The specific area affected is involved in LPG and low aromatic gasoline production. Viva Energy CEO Scott Wyatt stated the refinery is operating at "minimum capacity" while damage is assessed. Energy Minister Chris Bowen confirmed the incident would impact petrol production.
• Current Output: Prime Minister Anthony Albanese reported on Friday that petrol production at the facility had fallen by 40%, while diesel and aviation fuel production continues at 80% capacity. Viva Energy's refinery manager stated the company is still producing petrol, diesel, and jet fuel.
• Supply Assurance: Both Viva Energy and government officials have stated fuel supply to the market is sufficient. The government stated the incident would not trigger "stage 3" of the national fuel security plan.
• Market Response: Initial predictions of immediate price spikes did not materialize on Friday. Wholesale unleaded petrol prices remained below 191 cents per liter in major cities.

Background on the Geelong Refinery

• Operations: The refinery began operations in 1954 and is owned and operated by Viva Energy.
• Capacity: It can process up to 120,000 barrels of crude oil per day.
• Market Share: According to the company, the facility supplies approximately 10% of Australia's fuel and more than 50% of the fuel used in the state of Victoria.
• Network: Viva Energy supplies fuel to a national network of approximately 1,500 service stations under the Shell, Liberty, and OTR brands.

Context: Australia's Refining Capacity and Fuel Security

The incident has highlighted Australia's reduced domestic refining capacity and increased reliance on fuel imports.

• Historical Context: Just over two decades ago, Australia had eight oil refineries. Six have closed since 2003.
• Current State: Australia now has two remaining refineries: Viva Energy's Geelong facility and Ampol's Lytton refinery in Brisbane. Together, they account for roughly 10-20% of the country's fuel supply.
• Import Reliance: Australia consumes approximately 1.15 million barrels of oil per day, with nearly 90% of its daily fuel consumption imported as refined product.

Analyst Alison Reeve (Grattan Institute) described the remaining refineries as "very small by world standards, and they're very old," noting government support is provided for fuel security and quality reasons.

Official Statements

• Bill Patterson, Viva Energy Refinery Manager: Described the scene as "confronting" and acknowledged a "significant failure" requiring thorough investigation.
• Scott Wyatt, Viva Energy CEO: Said the company would absorb the costs of the incident and not pass them to customers, expressing confidence there would be no impact on fuel supply.
• Chris Bowen, Federal Energy Minister: Confirmed the fire would impact petrol production and noted the facility would take time to repair. He acknowledged the event adds pressure to fuel stocks.

Ongoing Developments

• Environmental monitoring is being conducted by specialist hazardous materials crews and the Environment Protection Authority.
• The investigation into the precise cause of the equipment failure and ignition is continuing.
• The government is expected to provide further updates on the national fuel supply situation.