Industry responds to Altona refinery closure

In a statement, ExxonMobil said the Altona refinery was no longer considered economically viable and would be converted to an import terminal that will ensure “ongoing, reliable fuel supply for Victoria”. The decision was made following an extensive review of operations at the refinery, which commenced operation in 1949. The review considered the competitive supply of products into Australia, declining domestic crude oil production, future capital investments and the impacts of these factors on operating earnings.

“We are grateful for the tremendous efforts by our employees to improve the viability of the operation,” said Nathan Fay, chairman of ExxonMobil Australia. “We extend our thanks to the Federal Government for the significant support offered to Altona and other refineries. Our decision to convert our facility to a terminal is not a reflection of those efforts.”

Angus Taylor, the Federal Minister for Energy and Emissions Reduction, said ExxonMobil’s decision was “extremely disappointing”.

“The refinery employs around 300 staff,” said Taylor. “Our thoughts are with all of the refinery’s workers, their families and the local community businesses that will be impacted by this decision. The Australian Government expects ExxonMobil will provide whatever support is required to assist workers and the community during this difficult time. We will work with the Victorian Government to ensure this occurs.”

Innes Willox, CEO of the Ai Group, said the closure was a concern for the wider industrial ecosystem, given that petrochemicals are critical inputs for many other businesses. He also stressed the need for Australia to confront its severe fuel insecurity.

“Not only is Australian refinery capacity plunging, but most of the oil comes from overseas,” said Willox. “Any future disruption to global supply chains would see Australia rapidly grind to a halt unless we take far-sighted action. A more aggressive push into electrification, hydrogen and bioenergy can provide more sustainable security over time. But viable long-term solutions need to tie together climate, energy, industry and transport strategies.”

The United Workers Union (UWU) said the closure would put 350 jobs at risk, and criticised ExxonMobil for announcing the decision before it had held discussions with workers affected by the closure. It also attributed some blame to the Federal Government, stating that the “absence of a clear plan for the future of energy supply and manufacturing” was prompting multinational corporations to pull out of Australia.

“There is nothing inevitable about the destruction of secure and decent jobs,” said Tim Kennedy, National Secretary of the UWU. “The Altona refinery workers are highly skilled and valued by their employer. However, our domestic labour market has been hollowed out so extensively that these workers will likely not have equivalent jobs to move into once the site closes.

“This is a failure of vision. If we want to be a country that can ensure a secure and decent job for everyone who wants one, the Federal Government needs to invest in just transition and quality jobs of the future. The closure of the Altona site, without any plan to repurpose these workers’ skills for future industries, is a terrible missed opportunity.”

The Altona refinery will remain in operation while transition work is undertaken to ensure continued reliable fuel supply for ExxonMobil customers.