Multi-million$ contract to refine ADF fuel in Oz

Australian company Viva Energy Refining Pty Ltd has been awarded a $450million-per-year contract to refine and supply fuel for the Australian Defence Force.

FILE PHOTO (March 2017): Flight deck crew on HMAS Adelaide ‘hot refuel’ a running MH-60R Seahawk helicopter during Exercise Ocean Explorer 17, off the west coast of Australia. Photo by Leading Seaman Peter Thompson.

The contract – which is subject to market fluctuations – is for an initial six years and may be extended to 12 years.

It includes the supply of the specialist military aviation fuel for Navy helicopters, known as F44, which has not be produced in Australia for 10 years.

Australian Army soldiers from the 2nd Cavalry Regiment and the 5th Aviation Regiment conduct a refuel on a M1 Abrams tank during Exercise Eagle Walk at Townsville Field Training Area, Queensland. Photo by Lance Corporal Riley Blennerhassett.
Australian Army soldiers from the 2nd Cavalry Regiment and the 5th Aviation Regiment conduct a refuel on a M1 Abrams tank during Exercise Eagle Walk at Townsville Field Training Area, Queensland, March 2023. Photo by Lance Corporal Riley Blennerhassett.

The contract could be worth an estimated $2.7 billion over six years and will see ADF fuel supplies produced at the Viva Energy refinery in Geelong, Victoria – one of only two remaining oil refineries in Australia, where around 1000 people are employed.

Minister for Defence Industry Pat Conroy said that by awarding this contract to an Australian company the government was increasing Australia’s refining capability and reducing reliance on imported fuels.

“This secures a reliable fuel supply for Defence, critical to national security, and is consistent with the government’s response to the Defence Strategic Review, which highlighted fuel supply vulnerabilities and the need for resilient national fuel supply, distribution and storage,” Mr Conroy said.

“We are working hard to build a resilient fuel supply for Defence and to strengthen Australia’s national security – and this domestic fuel supply contract will contribute to this.

 

 


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Posted by Brian Hartigan

Managing Editor Contact Publishing Pty Ltd PO Box 3091 Minnamurra NSW 2533 AUSTRALIA

2 thoughts on “Multi-million$ contract to refine ADF fuel in Oz

  • 16/07/2023 at 12:38 pm
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    What about the trucks, tanks, engineers equipment and other armoured and light vehicles, not to mention the navy?
    Australia has been lax for a long time on suitable strategic storage of fuels for both military and civilian use.
    We cannot rely on open sea lanes in a conflict situation.
    A siege would see up with empty fuel tanks within a few months at most. (assuming severe rationing)

    Reply
  • 16/07/2023 at 12:34 pm
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    Isn’t this re-refining of fuel in Australia something that should never been allowed to stop (by previous Government’s) in the first place. Australia “needs” to rebuild our manufacturing base for everything so that we don’t have to rely upon other countries (incised anything happens).

    Reply

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