The Federal Government will increase Australia’s onshore diesel stockholdings through a new program which is a key part of the Government’s comprehensive fuel security package to secure Australia’s long-term fuel supply and bolster local industry.
Open to applications on 11 January 2021, the package also includes:
- backing the local refining sector through a production payment that values the fuel security benefits provided by a sovereign refining capability; and
- creating a minimum stockholding obligation for key transport fuels.
Today Minister for Energy and Emissions Reduction, the Hon. Angus Taylor MP, said Australia’s fuel security is essential for the country’s national security and underpins the entire economy.
“Fuel, and diesel in particular, is the lifeblood of so many sectors in our economy, including our farmers, truckies and tradies. It is essential that we get the right balance and location of our onshore stockholdings.”
“Increasing Australia’s capacity to store diesel complements our other fuel security measures. This will strengthen our ability to manage potential disruptions, protect Australian motorists from future high prices, and keep our economy moving,” he commented.
Through the Boosting Australia’s Diesel Storage Program, the Government will provide up to $200 million in competitive grants over three years to support the construction of an additional 780 megalitres of onshore diesel storage.
Successful projects will receive grants of up to $33.3 million, with the Government covering up to 50 per cent of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.
The Government seeks to target projects that enhance fuel security by being in a strategic regional location or that are connected to existing fuel infrastructure.
The program will also assist industry in meeting the new minimum stockholding obligation by 2024. The obligation will require industry to hold around 40 per cent more diesel than current levels.
To view the program guidelines and to apply visit: business.gov.au/badsp. Applications are able to be received for six weeks and will close on 22 February 2021.
