BP intends to halt refining
operations at its 102,000
bpd Bulwer Island refinery
in Brisbane, Queensland,
by mid-2015, the company said on Tuesday.
Andy Holmes, President of BP Australasia, said that the
growth of very large refineries in the Asia-Pacific region
was driving structural change within the fuels supply chain
in Australia and putting huge commercial pressure on smaller
Its against this background that we have
concluded that the best option for strengthening BPs
long-term supply position in the East coast retail and
commercial fuels markets is to purchase product from other
refineries," he said.
And while more of our transport fuel demand will be met
by imports in future,ample supplies are available to maintain
Australias energy security," he continued.
While this decision will significantly improve our
competitive position,it will result in job losses, and I
would like to acknowledge the enormous commitment and
contribution made over many years by our staff at Bulwer
Island. We will be doing everything we can to support them
through this transition.
To ensure no disruption to customers, alternate supply
arrangements have been made. This includes imports of jet
fuel and a long-term agreement with Caltex for the provision
of motor spirit and diesel from the nearby Lytton refinery
It is expected that it will take some 12 months to implement
the changes required to maintain supply and safely shut down
the process units.
Once processing has been halted,the import jetty, aviation
fuel tanks and associated pipelines will remain operational
while other storage tanks and pipelines will be placed on a
care and maintenance
basis pending a
decision to convert the site to a multi-product import
The processing units will be isolated and made safe while
plans for their eventual removal and any environment
al remediation are
BP currently employs some 380 staff at the refinery. Between
now and mid-2015 this is expected to fall to around 25.
The Bulwer Island refinery
was built on reclaimed
land by Amoco between 1964 and 1965 and was bought by BP in
Over the years it has been subject to a number of
modifications and improvements. In 2000, it was significantly
upgraded to produce low-sulfur fuels.