The Australasian Convenience and Petroleum Marketers Association (ACAPMA) said that the announcement by Shell to sell their Geelong refinery should be seen as a great opportunity for the downstream petroleum industry.
Nic Moulis, ACAPMA CEO, explained that despite the loss of jobs in the region, the sale of the refinery allows the industry to open up to international buyers and discover where opportunities exist, “More overseas companies are looking to our country for investment opportunities. Just look at the recent takeovers by Trafigura, through their Puma energy business, who recently invested close to $1.2 billion into the Australian fuel market. The industry is growing past just Shell, Caltex, BP and Mobil, and I think this is a responsible way of finding where those opportunities exist.”
ACAPMA believes this is part of an evolution and were not surprised by the recent Shell announcement.
“We believe Shell have taken a responsible step here in saying, if there is someone who is willing to make the investment, then let’s see if we can find that opportunity,” said Mr Moulis.
According to Mr Moulis, refineries in Australia are not meeting current demand, calling for the need to regularly import fuel products. “If you appreciate the overall refining structure of the fuel industry in Australia right now, it highlights wider ramifications within the fuel economy in Australia, where local refineries may not necessarily be the total supply supplement.
“The Australian market has grown to a point where the refineries here are not satisfying demand. We are already importing close to 50 per cent of our diesel and about 18-20 per cent of our motor spirit requirement.
“What we are looking for into the future is open access supply terminals, seaboard terminals, where ships from all over the region can supply fuel into the market.”
Mr Moulis believes the diesel shortage experienced in Victoria last year only confirms the necessity for increased supply.
“What we do not see in Victoria at the moment is a great number of independent open access seaboard terminals. The diesel shortage experienced last year shows that we need more supply into Victoria from the international market,” said Mr Moulis.
“The sale of the Shell refinery, or its redevelopment into a terminal, could be an opportunity to help that supply chain and maybe even create more competition within it. I know it’s difficult, but we need to keep an open mind as to what the future of refining and terminalling could look like in Australia because it could benefit the consumer and agriculture.”
Mr Moulis also stated that the new refineries in Asia refine fuel to a higher standard than is required in the Australian market, “We have a diverse source of high quality fuel from several countries and I think that this is an opportunity that Australia should not be missing out on.”
Background:
The Australasian Convenience and Petroleum Marketers Association (ACAPMA) is a not-for-profit employer organisation that has represented the interests of businesses in the petroleum distribution and petrol convenience industries for over 38 years.
As the leading association and national peak body responsible for the development and growth of the petroleum distribution and petrol convenience retail industries, ACAPMA members include over 90 percent of the 120 businesses that operate in petroleum distribution and storage, while representing – through direct ownership, operation or supply – over 3,500 service stations. ACAPMA’s membership profile in the main is independent small-to-medium businesses operating in metropolitan as well as regional and rural Australia.
ACAPMAs CEO, Nic Moulis
