BP Pulls Plug on Australia Refinery as Asian Competition Bites
- Company will transition Kwinana into an import terminal
- Future of Australia’s three other refineries is also in doubt
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BP Plc will cease fuel production at its 65-year-old Kwinana refinery in Western Australia, citing low margins and tough competition from Asia, and will transition the facility into an import terminal.
The U.K. company’s move will leave Australia with just three remaining refineries, with the future of those also in doubt after the demand destruction caused by Covid-19 hit an industry already struggling to stay profitable. The government in September announced a package of measures to support the refiners, including a potential production payment to recognize their strategic role in supporting the nation’s fuel security.