ExxonMobil has confirmed it will close its Altona refinery after 72 years.
ExxonMobil on Wednesday said the refinery was “no longer considered economically viable” and would be converted into an import terminal to “ensure ongoing, reliable fuel supply for Victoria”.
“The decision was made following an extensive review of operations at Australia’s smallest refinery, which commenced operation in 1949,” ExxonMobil said in a statement.
“The review considered the competitive supply of products into Australia, declining domestic crude oil production, future capital investments and the impacts of these factors on operating earnings”.
ExxonMobil Australia chairman Nathan Fay addressed his comments to the 350 workers employed by the Altona refinery.
“We are grateful for the tremendous efforts by our employees to improve the viability of the operation,” he said.
“We extend our thanks to the federal government for the significant support offered to Altona and other refineries.
“Our decision to convert our facility to a terminal is not a reflection of those efforts.”
ExxonMobil said the Altona refinery would remain in operation while transition work was undertaken “to ensure continued, reliable fuel supply for our Mobil customers”.
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.
The Altona refinery produces about half of Victoria’s refined fuel needs.
ExxonMobil said it would remain a critical supplier of energy to Australia, including through its operation of the Gippsland Basin joint venture which supplies 40 per cent of eastern Australia’s energy needs.
Altona MP Jill Hennessy and Williamstown MP Melissa Horne issued a joint statement describing the decision as “devastating”.
“We know this is an incredibly sad day for workers and their families, and our thoughts are with the many people impacted by this,” they said.
“This is challenging news, but you have this government’s full support.
“The west has a rich industrial past, and the refinery has played a key role in that, operating for decades and employing generations of workers.
“This is a highly skilled workforce and our priority is assisting them wherever possible to find other employment in advanced manufacturing and other areas suitable to their tailored skill sets.
“Please be assured that as your local members, we will continue to speak with ExxonMobil and unions as a matter of urgency to understand how we can best support the employees and families impacted by today’s devastating announcement.”
