Viva mulls full shutdown of Australian Geelong refinery

Spanish Market: Crude oil, Oil products
07/09/20

Australian refiner and marketer Viva Energy is considering the possibility of a full shutdown of the 128,000 b/d Geelong refinery because of its challenging long-term outlook following the sharp fall in oil products demand, which continues to weigh on regional refining margins.

Geelong is operating at reduced output because of the impact on fuel demand with Victoria state's continued Covid-19 lockdown.

"If these restrictions are relaxed as foreshadowed and fuel demand sufficiently recovers, then it is possible that the refinery could return to full production in November 2020 as currently

planned," Viva said. "The company is assessing other options to address operating losses, including the possibility of moving to a full shutdown of the facility."

Viva plans to have an update on the long-term plan for the refinery in its July-September quarter trading update in October.

Viva, which is controlled by global energy trading firm Vitol, bought Geelong in 2014 from Shell, along with hundreds of Australian retail outlets for A$2.9bn ($2.1bn). Even at the time of this acquisition Vitol said the global refining market was challenging.

Geelong is one of only four refineries left in Australia, along with Ampol's 109,000 b/d Lytton in Brisbane, ExxonMobil's 90,000 b/d Altona in Melbourne and the 146,000 b/d Kwinana in Perth owned by BP. Their combined capacity of 473,000 b/d is less than half of Australia's consumption.

BP's 98,000 b/d Bulwer Island in Brisbane, as well as Ampol's 135,000 b/d Kurnell and Shell's 75,000 b/d Clyde, both in Sydney, were closed during 2012-15, adding to the country's reliance on product imports.

The impact of the Covid-19 pandemic on product demand has exposed rising refinery overcapacity in Asia-Pacific. Chinese capacity has increased sharply in recent years, calling into question the viability of refineries elsewhere in the region. Shell last month announced the permanent closure of its 110,000 b/d Tabangao refinery in the Philippines, while Refining NZ is considering converting its 135,000 b/d Marsden Point in New Zealand to an import terminal.

By Kevin Morrison

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06/05/25

India launches attacks on Pakistan

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Trump unlikely to lift tariffs on Canada

06/05/25

Trump unlikely to lift tariffs on Canada

Washington, 6 May (Argus) — President Donald Trump suggested today he would not lift tariffs on imports from Canada and told Canadian prime minister Mark Carney that the US-Canada-Mexico (USMCA) free trade agreement needs to be renegotiated. Trump, who hosted Carney at the White House today, told reporters that there was nothing Canada's leader could tell him to change his mind on stiff tariffs he imposed on Canadian steel, aluminum, cars and auto parts. "It's just the way it is," Trump said. While Trump has altered his tariff levels repeatedly, his administration has imposed a 25pc tariff on Canada-sourced steel and aluminum, and a 25pc tariff on some cars and autoparts imported from Canada. Any product that qualifies for duty-free treatment under the USMCA is exempt from tariffs Trump imposed. The 10pc tariff Trump imposed on Canadian crude and other energy imports only lasted from 4-7 March, causing turmoil in North American energy markets. But even the remaining tariffs are a significant hindrance for the integrated North American auto industry, executives in Canada and the US have said. Trump today described the USMCA, which he negotiated during his first administration, as merely a "transitional deal" and suggested that it could be either terminated or renegotiated completely. The USMCA includes a provision calling for it to be reviewed by all three countries in 2026. The existing free trade agreement is "a basis for broader negotiations," Carney said, adding that "some things about it are going to have to change." Carney made his first trip to Washington just a week after winning the 28 April parliamentary election, following a campaign centered around his opposition to Trump's policies. Trump and Carney offered polite compliments to each other, but there was little visible chemistry between the two men. Trump doubled down on his suggestion that Canada could become the 51st US state, prompting Carney to tell him that "as you know from real estate, there are some places that are never for sale." "Having met with the owners of Canada over the course of the campaign in the last several months, it's not for sale," Carney said. "Never say never", Trump retorted. Trump also repeated his past claims that "we don't do much business with Canada. From our standpoint, they do a lot of business with us." "We are the largest client of the United States," said Carney. "We have a tremendous auto sector between the two of us." By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to end military campaign in Yemen: Update

06/05/25

Trump to end military campaign in Yemen: Update

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US onshore crude output likely peaked: Diamondback

06/05/25

US onshore crude output likely peaked: Diamondback

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EIA trims WTI outlook to near $60/bl

06/05/25

EIA trims WTI outlook to near $60/bl

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