This represents a significant milestone in the two-year project to convert the historic refinery site to Australia’s largest fuel import terminal. The project remains on time and on budget.
The project was announced in July 2012 with the purpose of enabling continued reliable supply of transport fuels to Caltex customers, while stemming Kurnell refinery operating losses and reducing exposure to volatile refining margins.
The terminal provides 750 million litres of storage capacity and will supply fuel to retail sites and commercial customers across New South Wales and the ACT.
Of the total terminal conversion costs of approximately $270 million, approximately $40 million has been deferred into 2015 for operational efficiency reasons. This includes additional upgrades to the wharf and the final tank conversions once the refinery is closed. As previously announced, further site works, including demolition of redundant plant and remediation, will be carried out over a number of years.
Caltex Australia Managing Director & CEO Julian Segal said the conversion of Kurnell marked the transformation of Caltex from two businesses, refining and marketing, into one integrated transport fuel supply chain company.
"The strong progress of the closure and conversion works has presented Caltex with the opportunity to undertake a company-wide cost and efficiency review, which we announced on 25 August 2014. This will give Caltex the financial strength to maintain its market leadership position and to enable us to capture future growth opportunities," Mr Segal said.
