ExxonMobil has announced the Altona refinery is no longer considered economically viable and will be converted to an import terminal to ensure ongoing, reliable fuel supply for Victoria.
The decision was made following an extensive review of operations at Australia’s smallest refinery, which commenced operation in 1949.
The review considered the competitive supply of products into Australia, declining domestic crude oil production, future capital investments and the impacts of these factors on operating earnings.
Chairman of ExxonMobil Nathan Fay said the company was grateful for the efforts employees to improve the viability of the operation.
“We extend our thanks to the federal government for the significant support offered to Altona and other refineries. Our decision to convert our facility to a terminal is not a reflection of those efforts,” he said.
The Altona refinery will remain in operation while transition work is undertaken to ensure continued reliable fuel supply for our Mobil customers. During the transition ExxonMobil’s priorities will remain the same as ever – meeting the expectations of employees, customers and business partners, while maintaining a consistent focus on safe, reliable and efficient operations.
ExxonMobil will remain a critical supplier of energy to Australia, including through its operation of the Gippsland Basin joint venture which supplies 40 per cent of eastern Australia’s energy needs.