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Defence Industry Minister Pat Conroy has announced a $450 million per year deal with Viva Energy Refining to safeguard national fuel security through a major contract to refine and supply fuel for the Australian Defence Force.
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Australian company Viva Energy Refining has been awarded a $450 million per year contract, subject to market fluctuations, for an initial six years which may be extended to 12 years.
The contract includes the supply of the specialist military aviation fuel for Navy helicopters, known as F44, and could be worth an estimated $2.7 billion over six years.
Minister for Defence Industry, the Hon Pat Conroy MP, welcomed this announcement saying, “The Albanese government is proud to be supporting Australian industry and jobs rather than importing specialist military aviation fuel.”
This fuel will be produced at the Viva Energy refinery in Geelong, Victoria, one of two remaining oil refineries in Australia, where around 1,000 people are employed.
Minister Conroy also stressed the importance of this commitment for Australia’s national security and resilience, saying, “Coming after years of declining local oil refining and fuel production, this will be good for Australia’s defence, good for Australia’s energy security, and good for Australian jobs.”
Defence currently imports this specialist fuel and it has not been produced in Australia since 2013.
“The government is 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,” Minister Conroy added.
Through awarding this contract to an Australian company, the government is 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.
