The state government has announced a plan to unlock state-owned land for potential oil storage and refineries near ports along the Queensland coast.
The plan will see land near ports in Brisbane, Townsville, Mackay, Gladstone, Abbot Point and Bundaberg made available for expressions of interest by industry for the construction of oil infrastructure.
Successful tenders will be able to build fuel storage tanks on the land, with the option to also build refineries.
The new Accelerating Fuel Infrastructure Program includes an audit of potential land for development, rapid market engagement for construction, and a streamlined process for approvals on new oil projects.
It’s unclear when construction could start on projects.
The government will also accept proposals from industry on sites with potential for development.
Intended to improve ‘sovereign capability’
The project is part of the government’s Queensland Fuel Security Plan, which Premier David Crisafulli said was intended to deliver relief from rising fuel prices and provide “sovereign capability” to protect from future shocks.
“We said that we would commit to pulling every lever we could to increase fuel sovereignty and security in this country, and that’s exactly what we’re doing,” he said.
He said the project would help insure Australia against the effects of being at the end of a global supply chain.
“And that’s why our focus is on making sure that right the way through the supply chain we do everything we can to increase our ability as a state and nation to drill, refine and store our own fuel.”
Mr Crisafulli also repeated calls for the federal government to scrap a 2025 decision to ban fossil fuel projects from the national interest exemption under the Environment Protection and Biodiversity Act.
Everyone we speak with tells us that the greatest impediment [to drilling] right now is that extra layer as part of the EPBC, which single-handedly added fossil fuels, and it happened late last year,” he said.
“And we’re asking the Commonwealth to remove that, and that would give the greatest signal to the market that these projects can occur.”
Deputy Premier and Minister for State Development Jarrod Bleijie said the plan was similar to the Land Activation Program, intended to unlock land for housing.
“The Queensland government, the taxpayers, own vast amounts of land across the state and it has been utilised as it should be for years,” he said.
“This is about partnering with the private sector, and we’re serious about it. We’re getting on with the job.”
Senior fellow for energy and climate change at the Grattan Institute, Tony Wood, said it was unlikely the plan would deliver what the government promised.
“We had eight oil refineries at the turn of the century. They were uneconomic,” he said.
“I think there are better things Australia could do.”
He said he could understand why the government may be tempted to help support refineries, but said it would be “a long time off yet” before crude oil from the Taroom Trough could be refined in Queensland.
“I think they’re spending at least five to 10 years, if not more, before you’d see anything that actually makes sense without enormous — I emphasise enormous — government support, and I don’t see any reason why that should happen.”
Plan won’t provide instant relief, opposition says
Opposition Leader Steven Miles said he welcomed government initiatives to improve the state’s fuel security over the next decade, but criticised what he called “another David Crisafulli photo op”.
“Queenslanders are struggling to fill their fuel tank right now. That’s where David Crisafulli’s focus should be,” he said.
“[This plan] is similar to what we’ve been calling on them to do for seven or eight weeks now.
“But nothing in this photo op will help Queenslanders with their cost of living right now.”
Deputy Opposition Leader Cameron Dick said it would be years before the plan saw fruition, and when it did, fuel needed to be kept for Queenslanders.
“Unless this oil is kept for Queenslanders, big oil companies will get the cream and Queenslanders will get the crumbs.
“David Crisafulli should … be using the billions of dollars in additional royalties that the government is receiving [due to the Iran war] to deliver direct cost-of-living relief to Queensland families today.”
Mackay Regional Council mayor Greg Williamson said he supported anything that strengthens fuel security, “for regional Queensland in particular”.
“This … program about drilling and storing and future-proofing our industrial sectors in our communities in Queensland, it’s really welcome,” Cr Williamson said.
“I think all of our businesses and all of the people who rely on diesel in particular, all of the industrial sectors, the agricultural hubs, that will be great news to hear.
“It’s really critical to give confidence to the industry sectors that provide a huge amount to the Queensland economy.”
“Your company news doesn’t just get published – it’s seen by the decision makers who matter.”
