Mobil is expected to announce the closure of its 72-year-old Altona refinery in Victoria on Wednesday.
Mobil is understood to have advised the Victorian government of its decision, which comes less than five months after fellow international major BP pulled the plug on its only remaining refinery in Australia, at Kwinana in Western Australia, the Australian Financial Review reports.
One of four remaining refineries in Australia, Mobil’s Altona operations have been affected by COVID-19 border closures, flight cancellations and stay home orders. Demand for jet fuel has dropped by up to 90 per cent.
As reported by Star Weekly in September, stage 4 lockdown was causing “unprecedented losses“ at the Altona refinery, as Viva Energy warned it could be forced to close its Geelong plant.
At the time, a Mobil spokesman said the state government’s extended freedom of movement restrictions and subsequent prolonged reduction in fuel demand had placed unprecedented pressure on the Altona refinery.
“The global pandemic has led to an oversupply in the Asia Pacific region, and together with the stage 4 restrictions, has caused Altona refinery to operate at a loss,“ the spokesman had said.
The Altona refinery produces about half of Victoria’s refined fuel needs and employs about 350 people.
Viva’s Geelong plant, which refines the other half of Victoria’s domestic petrol supply and employs 700, last year announced it risked imminent closure.
Mobil has been contacted for comment.
