On Monday,the chief executives of Ampol and Viva said they intended to keep their plants running until at least mid-2027,safeguarding at-risk jobs and ensuring the nation does not lose the capacity to produce its own transport fuels.
“Ampol is pleased that today’s outcome delivers value for shareholders and provides clarity and a path forward for our valued employees at Lytton,supporting the continued employment of 550 Australian manufacturing jobs and the indirect employment of hundreds more,” Ampol chief Matthew Halliday said.
“The outcome will also allow Ampol to progress alternative future energy uses for this strategic site,preserving manufacturing skills that will be critical for success in the energy transition.”
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The oil refining sector has been under enormous pressure since the onset of the COVID-19 crisis last year,as travel bans to arrest the spread of infections gutted demand and hammered their profit margins. Oil refineries in Australia have also been struggling to compete against the cheaper-to-run mega-refineries of south-east Asia.
“This has seen the number of refineries in Australia reduce from six in 2011,to only two continuing refineries today,leaving the country predominantly reliant on product imports from international refineries for our fuel requirements,” Viva Energy chief executive Scott Wyatt said.
“In financial year 2020,our Geelong operations had a cash loss of over $200 million,and without the support of the federal government continued operations would have not been sustainable.”