Santos has moved to shore up Australia’s fuel security, fast-tracking crude oil deliveries to domestic refineries as global supply chains buckle under mounting pressure in the Middle East.
The move comes as the closure of the Strait of Hormuz, a primary global artery for energy, has choked off more than 20 per cent of the world’s seaborne oil and LNG trade.
With roughly 80 per cent of the petroleum products typically transiting the waterway destined for Asian refineries, the regional market has been thrown into significant disarray.
In response to the heightened uncertainty, Viva Energy has deferred planned maintenance at its Geelong refinery in Victoria to keep the facility running at maximum capacity.
To sustain this increased output, particularly for critical diesel production, Santos is collaborating with Viva to bring forward a substantial 575,000-barrel parcel of Cooper Basin crude by approximately one month.
The shipment has been restructured into two separate deliveries, ensuring the Geelong refinery receives the feedstock required to maintain peak production levels without delay.
In addition, Santos has offloaded a 150,000-barrel parcel of Varanus Island crude to Ampol to support its refining operations.
Santos CEO Kevin Gallagher said the measures reflect a commitment to Australia during a period of global disruption.
“These actions demonstrate Santos’ commitment to working constructively with industry partners and government to maintain stable fuel supply and support Australia’s energy security during a period of global market disruption.”
Viva Energy CEO Scott Wyatt said the Geelong plant has been pushed to its limits since the regional conflict escalated.
“Our Geelong refinery has been running at maximum rates since the recent events in the Middle East, with a focus on maximising diesel production.
“Santos’ prompt support to bring forward crude deliveries has been critical to maintaining this production and demonstrates how we are working together to safeguard Australian fuel security.”
