A major gas leak and subsequent fire at the Viva Energy Geelong refinery has caused significant disruption to Australia's fuel supply, particularly amidst global supply chain issues.
The Geelong refinery, responsible for approximately 10 percent of Australia’s fuel production (around 120,000 barrels per day), was engulfed in flames after a gas leak ignited on Wednesday night. The blaze, which quickly spread to heights of 60 meters (200 feet), occurred at the plant’s largest section, operated by Viva Energy. This is one of only two operational oil refineries in Australia. Australia relies heavily on fuel imports, with 80 percent of its needs coming from external sources. The ongoing Iran conflict has exacerbated this reliance and driven up energy prices globally. The timing of the fire is particularly concerning given the nation’s efforts to bolster fuel security. Energy finance analyst Kevin Morrison highlighted the situation, noting that the Asia Pacific region is facing a broader fuel security problem and Australia lacks substantial stockpiles. He emphasized the significant impact of the refinery's shutdown, particularly given the plant's age – having begun operations in the 1950s – and its operation at maximum capacity due to the global oil crisis. In response to the crisis, Prime Minister Anthony Albanese secured an additional 100 million litres of diesel from Brunei and South Korea. This move is part of a new strategic reserve initiative. The fire initially impacted the area producing high-octane petrol, but careful isolation of valves prevented damage to sections producing jet fuel and diesel. Authorities are urging Australians to avoid panic-buying, stating that it’s important to purchase only the fuel needed. Incident controller Mark McGuinness described the events as “very challenging,” stemming from a significant leak of flammable gases. The fire evolved rapidly, involving several explosions before escalating into a large, intense blaze. Viva Energy CEO Scott Wyatt stated that getting the site safe is the top priority, and production is not currently a concern. Smoke continued to billow from the industrial complex on Thursday morning. Canberra has also stressed the importance of maintaining existing reserve levels, which stand at roughly 38 days’ petrol.
Sources: Based on reporting from Al Jazeera
✨ This report was generated by AI News Assistant.
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