Gladstone to be the site of new $700 million oil refinery ?

[ozbob]

Brisbanetimes --> Gladstone to be the site of new $700 million oil refinery

Gladstone could be the location for a $700 million 'niche' oil refinery,  as a joint venture of local and overseas partners launches  formal studies with the aim of completing the mooted project by mid-2019.   

The project, planned at 46,000 barrels a day, is much smaller than recently shuttered refineries such as at Kurnell and Clyde in Sydney –124,500 and 85,000 barrels a day respectively – and BP's Bulwer Island in Brisbane that, at 102,000 barrels a day, is slated for closure in the coming months.

Brisbane-based businessman Duncan Mackenzie said he has formed a joint venture with US Eagle Ford Oil and Gas of the US to pursue the project.

"It's out of the box," Mr Mackenzie said of the proposal, which centres on the production of an ultra-low sulphur diesel and some regular oils along with small quantities of liquefied petroleum gas (LPG) and fuel oil.

"It is a 'niche' project targeting the regional market," he said. "Diesel figures prominently.

"There's a burgeoning market in central Queensland – industrial and agricultural – and Gladstone has a deepwater port.

"Gladstone presents itself as a focus for industrial development." ...

[Stillwater]

While it is in the early stages, community would need to see a transport and logistics strategy -- not much capacity for rail to transport refined petroleum product south to Brisbane.  Greenies would kick up a fuss over shipment by sea, past the southern Barrier Reef.

[Matt]

Not sure how much refinery you get for $700m, but it's a start.