Fire at Viva Energy Group’s Geelong refinery may disrupt 10% of Australia’s fuel supply

A major fire broke out at southern Australia’s Viva Energy Group Geelong refinery around midnight on Wednesday, following multiple explosions that triggered intense flames and smoke, severely disrupting petrol production. Reports said the fire erupted in two adjacent refinery units, raising concerns over a potential 10 percent reduction in Australia’s fuel supply. No casualties or injuries have been reported in the incident.

Fire Rescue Victoria, the firefighting agency, was alerted to the explosions and flames at the refinery around midnight on Wednesday, with several fire tenders deployed to control the blaze. Reports indicated that significant damage had already occurred by the time the fire was brought under control. Rescue operations were still underway as of Thursday afternoon. The full extent of the damage had not been assessed at the time of writing, as authorities continued efforts to contain the blaze involving “liquids, fuels, and gases.”

While the exact cause of the fire is yet to be determined, reports said that investigating agencies have been assigned to ascertain the reason. However, identifying the precise cause is expected to take time. In a statement, Fire Rescue Victoria said, “Specialist hazardous materials crews are currently undertaking atmospheric monitoring and are being supported by scientific officers. There have been no injuries or casualties.”

The refinery
Established in 1954, southern Australia’s Viva Energy Group Geelong refinery has remained a cornerstone of the country’s downstream petroleum sector. Located in Geelong, the refinery has steadily evolved to meet changing energy demands while maintaining its operational scale and strategic relevance within the region.

The refinery is capable of processing up to 120,000 barrels of crude oil per day and produces a wide range of essential fuels. These include petrol, diesel, liquefied petroleum gas (LPG), jet fuel, and other aviation fuels, ensuring supply to key sectors such as transportation, manufacturing, and aviation. These include being Australia’s only manufacturer of hydrocarbon solvents, marine fuel oil, low aromatic fuel, avgas, bitumen and high-quality plastic feedstock used to create food packaging, medical equipment and polymer banknotes.

Importantly, the Geelong refinery plays a critical role in Australia’s fuel security. It supplies over 50 percent of Victoria’s fuel requirements and around 10 percent of the nation’s total fuel demand, underlining its significance as a major contributor to both state and national energy needs. The refinery is a large employer committed to supporting the local community in Geelong, providing unique apprenticeship and training opportunities which have equipped many young apprentices with a range of highly employable skills. The company also recognises the importance of being an active contributor in the local Geelong community and is committed to building strong relationships and making a positive difference.

Import dependence
The fire at Viva Energy Group’s Geelong refinery raises concerns over potential disruptions to domestic energy availability. Emergency crews responded swiftly to contain the blaze as authorities monitored safety risks and operational impacts. The incident has sparked worries about supply stability and possible fuel price pressures if refinery operations remain affected for an extended period.

Australia remains heavily dependent on imported crude oil, reflecting the steady decline in its domestic production over the past two decades. While the country still operates a limited number of refineries, including the Viva Energy Group Geelong refinery, a significant share of crude oil and refined petroleum products is sourced from overseas to meet domestic demand. This structural reliance exposes the country to global supply dynamics and price volatility.

A large portion of Australia’s crude imports originates from West Asia, particularly from key producers such as Saudi Arabia and the United Arab Emirates. Additionally, Australia imports refined fuels from major Asian refining hubs like Singapore, which themselves depend on crude supplies routed through critical maritime chokepoints. This interconnected supply chain makes Australia indirectly vulnerable to disruptions far beyond its immediate geography.

Impact of geopolitical conflict
Geopolitical tensions in West Asia, especially involving major oil-producing nations, can significantly impact Australia’s energy security. Any escalation in conflict can tighten global crude supply, drive up international oil prices, and increase freight and insurance costs. These effects typically translate into higher domestic fuel prices, inflationary pressures, and increased input costs for industries reliant on petroleum products.

The potential closure or disruption of the Strait of Hormuz—through which a substantial portion of the world’s oil supply passes—poses a particularly acute risk. Such a scenario would severely constrain global oil flows, trigger sharp price spikes, and strain supply chains across Asia-Pacific, including Australia. For a country dependent on imported energy, prolonged disruption could challenge fuel availability, necessitate emergency stock drawdowns, and intensify the urgency of diversifying supply sources and accelerating the transition to alternative energy.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com