BP to Close Kwimana Refinery in Australia Due to Low Margins
October 30 2020 - 6:34AM
Dow Jones News
By Jaime Llinares Taboada
BP PLC said Friday that it will cease producing fuels at its
Kwimana refinery in Western Australia as the operation is no longer
economically viable, and that it plans to convert it into an import
terminal.
The FTSE 100 oil major said a higher number of large-scale
refineries in Asia and the Middle East have disrupted the
Australian market, causing regional oversupply and sustained low
margins. Kwimana has the capacity to produce 152,000 barrels a
day.
BP added that the closure is aligned with its strategy to focus
on high-grade refining. The company intends to reduce refining
production to 1.5 million barrels by 2025 from the current 1.7
million.
Refining activities at Kwimana will wind down over the next six
months, the company said. Construction works for the new terminal
are expected until 2022. Once completed, the site is expected to
support 60 jobs--compared with the current 650 workforce.
BP said it is also exploring future options for Kwimana,
including a clean energy hub that could produce and store low
carbon fuels.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
October 30, 2020 06:19 ET (10:19 GMT)
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