An additional 100 million litres of diesel is on its way, secured with government underwriting through Export Finance Australia. Photo: Jennifer Latuperisa.
Australia will soon have an additional 100 million litres of diesel added to its supplies, with two shipments coming from Brunei and South Korea.
Viva Energy (Shell) has secured two new shipments with help from the Federal Government’s new Strategic Reserve powers to underwrite fuel purchases.
Under these new powers, Export Finance Australia (EFA) has partnered with Viva to purchase more than 570,000 barrels of additional diesel.
EFA has also agreed to commercial terms with Ampol, Park Fuels and IOR. These agreements are supporting them to purchase the additional fuel needed to address regional shortages and critical supply gaps.
This is the first of the expected shipments of fuel secured under the government’s new Strategic Reserve powers.
The two shipments, 50 million litres each, are expected to arrive in Australia in May, with the government expecting more such deals to be finalised soon.
Anthony Albanese said the additional fuel can be directed to where it is needed most, including to farmers and regional communities, and to the services that all Australians rely on.
“This agreement strengthens Australia’s fuel security by ensuring additional cargoes are delivered to the domestic market when and where they are needed most,” the Prime Minister said.
“We’re taking every practical measure required to shield our nation and household budgets from the worst of this global uncertainty.”
The government is only helping to acquire additional supplies for Australia’s fuel security, where it would be cost-prohibitive for private suppliers to source on commercial terms without government support.
Trade Minister Don Farrell, who played a key role in securing the deal, said the new powers were being used strategically for Australia’s benefit.
“We know that the impacts of this conflict will be with us for some time, and we are taking every possible step to secure what Australians need to keep our country moving,” Senator Farrell said.
“Our Strategic Reserve powers go further than fuel, they will secure the supply of strategic materials that are vital to our economy, including fertiliser and other goods impacted by the current conflict in the Middle East.”
A fire at Viva Energy’s oil refinery in Geelong – one of Australia’s two operational oil refineries – broke out at around 11 pm on Wednesday (15 April) and burned for 13 hours before being fully extinguished on Thursday.
The Prime Minister returned early from his southeast Asian visit, flying overnight from Malaysia to Geelong to receive an update on the impact of the fire on Viva Energy’s refinery.
Energy Minister Chris Bowen noted that it appeared to be an accident but added that it could further impact the nation’s petrol supplies “for some time”.
“This is not a positive development,” he said of the blaze.
“I can say that Viva has advised me that the likely impact is primarily on gasoline [petrol] and aviation gasoline.
“Obviously, we’ll continue to work over the weekend with Viva, and I will provide, as Viva will, full updates to the Australian people as soon as more information and clarity come to hand.
“I think Australians understand this is a fast-moving situation, the site is still being secured and making sure it’s safe for everyone to get in and assess the damage.”
The Federal Government and the states and territories have so far resisted calls to implement fuel rationing.
National Cabinet agreed on a National Fuel Security Plan in March, with level three requiring targeted action.
“Governments will act to secure supply. Clear guidance will be provided on how you can help make sure fuel gets to where it’s needed most,” level three of the plan states.
“All governments will look for practical measures to help you reduce your use.
“All Australians are in this together, and we will need to play our part to help fuel get to where it’s needed most.”
Level three has not been put into action at this stage.
Original Article published by Chris Johnson on Region Canberra.
