Australian refinery troubles lead to rising import dependence

But Australia will benefit from proximity to Asia’s new facilities

Two years ago, there were seven refineries in Australia. That total is about to become five, and from the middle of next year there will be only four. With a combined capacity of 450,500 barrels a day (b/d), the four remaining facilities will cover only 47% of Australia’s refined products consumption, so import reliance will increase sharply. While no-one likes to see domestic industries contract, Australia can take comfort from being part of a world trend. Historically, crude was delivered long-distance to refineries constructed in consuming countries, but since the turn of the century there has been rapid growth of export refining capacity in Asia and the Middle East. Product tankers have