ExxonMobil Australia’s subsidiary Mobil Refining Australia (Mobil) announced plans to expand Altona refinery’s capacity utilising locally produced crude to meet the region’s growing demand for refined products.
The announcement was made at an event attended by The Honourable Lily D’Ambrosio MP, Victorian Minister for Industry; Energy and Resources.
The project will upgrade part of an existing crude unit to add a pre-distillation step in Altona refinery’s process that will increase the production of diesel and jet fuel.
Richard Owen, chair of ExxonMobil Australia, said the company is committed to investing in projects that generate superior shareholder value.
“ExxonMobil Australia is focused on making strategic investments to improve our competitive position and optimise our integrated oil and gas business to support continued supply of high-quality, locally produced fuel products to Victorian businesses and households,” said Owen.
The project is expected to increase Altona refinery’s overall production from 80,000 to 90,000 barrels per day and enhance energy efficiency and environmental performance through the recovery of an additional three megawatts of waste heat.
During the past five years, ExxonMobil Australia has invested more than AU$370 million in maintenance and other improvements at Altona refinery.
Andrew Warrell, Mobil’s manager of refining for Australia and New Zealand said, “We continuously evaluate new opportunities to meet market demands and to enhance the competitiveness of the Altona refinery.
“Our enduring success for nearly 70 years is due to a number of factors, including a highly-skilled workforce and our position relative to local markets.”
Project construction will begin in May 2016 and is expected to be completed in 2017.
A recent study commissioned by ExxonMobil found that Altona refinery’s current operation contributes AU$270 million to the Victorian economy each year.