Kwinana to become import terminal

BP will convert its Kwinana Refinery in Western Australia into a fuel import terminal in a move that is likely to lead to almost 600 job losses.

The company made the announcement on Friday, saying regional oversupply and low refining margins meant the refinery was no longer economically viable and would now cease fuel production.

‎“Today’s decision to cease refining is a difficult one and not in any way a result of local policy ‎settings,” said BP Australia Head of Country Frédéric Baudry.

“It comes in response to the long-term structural changes to the regional fuels ‎market.

“Converting to an import terminal will not impact the safe and reliable supply of quality ‎fuel products to Western Australia; however, it will require fewer people to run.

“We deeply ‎regret the job losses that will result and will do everything we can to support our people ‎through the transition.”‎

The refinery currently employs 400 permanent staff and 250 contractors; however, after refining activities wind down over the next six months, only about 60 jobs will remain at the import terminal.

Federal Minister for Energy and Emissions Reduction Angus Taylor said the Australian Government was “deeply disappointed” by the decision.

“Our thoughts are with BP’s workers, their families and local business owners who rely on the refinery for their livelihoods,” he said.

“The Australian Government expects BP to deliver on its commitment to do everything it can to support workers through this challenging period.”

BP also said it was exploring additional options for the site, including a potential clean energy hub.

The closure of Kwinana will drop Australia’s number of refineries to three.

For more information visit the BP website.

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