Perdaman Fertilisers is planning the construction of a new oil refinery in Western Australia, the first such facility built in the country since 1965 [1].
The project marks a significant shift in national energy infrastructure as Australia attempts to reduce its reliance on imported refined fuels. By establishing domestic refining capacity, the country aims to insulate its economy from global supply chain shocks and volatile international markets.
The refinery will be located near the town of Perdaman in Western Australia [2]. This development comes after a prolonged period of stagnation in the sector; Australia has not built a new oil refinery in about 60 years [2]. Other reports indicate the nation has not added refining capacity since the 1960s [3].
Industry analysts and government officials said recent petrol shortages are a primary driver for the move [4]. Some reports suggest that petrol stations running dry prompted a need for immediate government action [5], while other sources link the decision to the broader Strait of Hormuz crisis and global energy rationing [6].
While Perdaman Fertilisers is leading the current push for the refinery [2], there have been conflicting reports regarding the project's origins. Some sources said the federal government initially promoted a government-backed refinery before the current private-sector lead emerged [7].
The transition of a fertiliser company into the oil refining sector highlights the strategic pivot toward energy security. The facility is intended to ensure that essential fuel supplies remain available even during periods of intense global disruption.
“Australia has not built an oil refinery in about 60 years.”
The move to establish a new refinery signifies a strategic reversal of Australia's long-term trend of decommissioning or limiting refining capacity. By shifting toward domestic production, Australia is prioritizing energy sovereignty over the cost-efficiencies of the global spot market, likely in response to geopolitical instability in oil-rich regions.
