BP is to scrap one of its refineries in Australia after admitting that giant projects in the country were making its smaller operations too expensive.
The 102,000 barrels per day refinery at Bulwer Island in Brisbane is to be shut down by the middle of 2015 as giant refining plants across the Asia-Pacific region increase pressure on small scale facilities.
The move will see around 350 jobs go at the 380-staff facility, which was built in 1964 and taken over by BP 30 years ago.
In 2000 it was upgraded to produce low sulphur fuels, but now the British supermajor feels continuing operations at Bulwer is uneconomic.
“It’s against this background that we have concluded that the best option for strengthening BP’s long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries,” said BP Australasia president Andy Holmes.
“And while more of our transport fuel demand will be met by imports in future, ample supplies are available to maintain Australia’s energy security.”
“While this decision will significantly improve our competitive position, it will result in job losses and I would like to acknowledge the enormous commitment and contribution made over many years by our staff at Bulwer Island. We will be doing everything we can to support them through this transition.”
The shutdown will see processing stop and the units eventually made safe ahead of removal.
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