Viva Energy reports on Geelong refinery status following fire

Viva Energy Group Ltd. has stabilized operations at its 120,000-b/d Geelong refinery in Victoria, Australia, which continues operating at reduced rates following a mid-April fire in the site’s gasoline complex.

In an Apr. 20 update to the market, Viva Energy confirmed the Apr. 15 fire specifically occurred in the complex’s alkylation unit and was not fully extinguished until the morning of Apr. 16.

While the refinery’s crude distillation units and reformer continue operating, the site’s residue catalytic cracking unit (RCCU) remains temporarily offline as part of ongoing stabilization efforts, according to the company.

In the near term, Viva Energy said it expects the refinery’s diesel and jet fuel production to average about 80% normal capacity, with gasoline output reduced to about 60% capacity.

The company anticipates production constraints to ease in the coming weeks, subject to inspection and restart of the RCCU, which would allow the refinery’s combined output diesel, jet fuel, and gasoline to exceed 90% of nameplate capacity until all necessary repairs are completed.

With sufficient fuel inventories already on hand, Viva Energy said it remains well-positioned to maintain normal fuel supplies to customers during the production shortfalls.

“The whole Viva Energy team understands how important our refinery is to the energy security of the country, especially at the current time. We will progressively restore production once we are confident that it is safe to do so, and do not expect any disruptions to fuel availability or price increases for Viva Energy’s customers as a result of this incident,” Scott Wyatt, Viva Energy’s chief executive officer, said in a separate statement.

While the company confirmed an assessment of damage to the alkylation unit and associated systems is under way, estimated timelines for full repairs and financial impacts resulting from the fire have yet to be determined.

Alongside prioritizing the refinery’s safe return to full operations, Viva Energy said it will undertake a comprehensive investigation into the cause of the incident.