BP Kwinana Refinery to operate for another 30 years after agreement struck with State Govt

Projects in Kwinana were big winners in today's 2018-19 State Budget. Picture: File
Projects in Kwinana were big winners in today's 2018-19 State Budget. Picture: File

BP yesterday announced it has agreed to renew its state agreement with the West Australian Government to operate the Kwinana Refinery for a further 30 years, subject to parliamentary approval.

BP Kwinana refinery manager Des Gillen said the renewal of the agreement would enable the ongoing operation of Kwinana Refinery, Australia’s largest refinery and a significant contributor to the local economy.

The facility employs more than 700 people, including contractors, and supplies more than six million tones of fuel each year to WA, Tasmania and South Australia.

Mr Gillen said the agreement was being introduced to the WA Parliament as a bill with modernised terms, including a focus on ensuring local businesses continue to have access to supply chain opportunities generated by the refinery.

“BP is proud of its long history of more than 60 years as part of the Kwinana community and working with local businesses, and is focussed on underpinning continued safe operations at the refinery,” he said.

“With more than $80 million in upcoming planned maintenance and investment activities, we are committed to ongoing investment in the refinery to provide competitively priced fuels across the country.”

State Development Minister Bill Marmion said the refinery was a vital strategic asset for Western Australia, supplying a substantial volume of the State’s fuel requirements including essential aviation fuel to Perth Airport.

Legislation enacting the changes was introduced into State Parliament yesterday.

Kwinana Mayor Carol Adams welcomed the announcement, saying the City was thrilled that BP and the State Government have reached agreement for the Kwinana refinery to continue operating for the next 30 years.

“BP provides hundreds of local jobs and is an integral part of the Kwinana community and indeed the state of Western Australia,” Cr Adams said.

“We look forward to maintaining our strong relationship with BP to ensure matters such as local content remain a top priority over the coming years.”