A significant fire broke out at the Viva Energy refinery in Geelong shortly after 11 pm on Wednesday night. Fortunately, no injuries were reported, but it took firefighters a lengthy 13 hours to extinguish the flames.
Following a site visit on Thursday morning, Prime Minister Anthony Albanese reassured the public that the fire would not disrupt the country’s fuel supply. He confirmed that diesel and aviation fuel production remained at 80% capacity, while petrol production was slightly lower at 60%. Albanese expressed hope that production levels would increase over time.
Viva Energy’s CEO, Scott Wyatt, indicated that more information would be required to establish a repair timeline, emphasising that safety remains their top concern. Despite anticipating a financial impact from the incident, he assured that prices at the pump for consumers would not be affected. Wyatt expressed confidence that any shortfalls in production could be compensated by their import schedule, highlighting the robustness of their supply chain.
Viva Energy is a crucial player in the Australian fuel market, providing approximately 10% of the nation’s needs and 50% of Victoria’s. In response to the fire, both Viva and Ampol have secured agreements with Export Finance Australia to ensure they can import additional oil to mitigate any potential deficits. Furthermore, Prime Minister Albanese announced that BP had also reached an agreement to increase its imports globally.
In a timely move, 100 million litres of oil are already en route to Australia from Brunei and South Korea, following agreements made during the Prime Minister’s recent diplomatic engagements in the Asia-Pacific region. Albanese also expressed gratitude to Indonesian President Prabowo Subianto for a deal to provide an additional 20% of Australia’s urea requirements, addressing the dual crises of fuel and fertiliser shortages.
The situation continues to evolve, with officials taking measures to minimise the impacts of the refinery fire on the country’s fuel supply and the broader economy. The government’s actions aim to stabilise the situation and ensure sufficient resources for consumers and industries alike.