ExxonMobil Corp. will close its oil refinery at Altona, an inner western suburb of Melbourne in Victoria.
The company made the decision following an extensive review of the facility’s operation which found that Altona can no longer be considered economically viable. The refinery will be converted into a fuels import terminal to ensure ongoing supply for Victoria.
The decision is the latest in a string of refinery closures across Australia in the last few years and means that now only two remain – Viva Energy’s Geelong refinery in Victoria and Ampol’s Lytton refinery in Brisbane, Queensland.
Altona was the smallest of the country’s refineries, originally built and operated by Mobil from 1949 before being brought under the ExxonMobil umbrella with the merger of the two companies in November 1999.
The recent closures have cited the decline of Australia’s domestic crude oil production, the high level competition from petroleum products imported into Australia, the fall in oil price, the fall in demand for fuel during the COVID-19 pandemic, and the need for costly future capital investment as adversely impacting economics of continued operation.
ExxonMobil said Altona will remain in operation while transition work is undertaken to ensure continued supply to its customers. The refinery currently employs 350 people and supplies about half of Victoria’s refined fuel demand.
