Fuel supplier Viva Energy has restarted the main processing unit at its Geelong Refinery in Victoria, following a major fire that disrupted operations in April.
The company confirmed that repair works on the Residue Catalytic Cracking Unit (RCCU) have concluded. With the RCCU and its associated systems returning to operation this week, overall production at the refinery is expected to bounce back to more than 90 per cent of its normal capacity.
The restart allows the refinery to convert a greater proportion of lower-value intermediate materials into higher-value finished petroleum products, helping to restore heavily impacted refining margins.
Following the fire on April 15, the Geelong Refining Margin for April and May dipped to US$23.90 per barrel due to reduced production yields and rising crude premiums.
However, the refinery will still face long-term constraints. The site’s Alkylation unit sustained severe damage, has been completely isolated from the rest of the facility, and will remain offline.
Viva Energy warned that operating without the Alkylation unit will limit its capacity to convert LPG, a refining by-product, into petrol.
The company is currently assessing options to repair or replace the infrastructure, but expects the refinery will have to run without it throughout 2027.
Preliminary investigations indicate that the blaze was triggered by a pipe failure within the Alkylation unit, which leaked fuel that subsequently ignited.
Viva Energy praised its on-site refining team, whose swift response contained the fire and prevented injuries or wider damage to the complex.
The energy company is continuing to investigate the root cause of the pipe failure and is working closely with its insurers to process claims for property damage and business interruption.
The Geelong facility is one of only two oil refineries left operating in Australia, making its return to near-full capacity critical for the nation’s domestic fuel security.
