More Refineries in Australia Facing Imminent Closure, an Industrial Info Market Brief

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Viva Energy and Caltex Australia, two of the remaining four refiners in Australia, have conveyed to the public that they face imminent closures, should the Australian government refuse -- or be unable to -- step in to support continued operations, due to the devastating economic loss brought about by COVID-19 worldwide. Currently, Viva is reviewing a decision to proceed with a multi-million-dollar maintenance work event for August this year, as it needs to find justification in its cash outflow. Caltex Australia, on the other hand, has already began a turnaround at its Lytton refinery in Brisbane and is extending it ahead of its original schedule this July. Restarting would mainly depend on feasibility of profit margins in the coming months.

While there may be some early recovery signs, it is still too premature to ease the pressure, much less have a basis to pursue additional capex projects, as the Australian government is focused on long-term viability of the refineries.

Industrial Info is tracking the activities of the four refining companies in Australia, which also includes Exxon Mobil Altona and BP Kwinana. Click here for a list of all active refining projects in Australia.