Shell Geelong refinery to close

[BroadyFord]

Manufacturing in Oz is looking great!

http://yhoo.it/10xZoQA

Wonder if this will affect motoring in any way?

[BroadyFord]

^^ Update: Shell will try and sell refinery but will close if no buyer found.

[Road_Warrior]

This was announced a while back...? There is another refinery in Victoria, so supply shouldn't be affected considering there are another two refineries on the east coast to obtain supply. Shell, internationally I think, are having financial problems as they are closing/have closed their Clyde refinery in Sydney.

[jpd80]

Originally Posted by Road_Warrior

This was announced a while back...? There is another refinery in Victoria, so supply shouldn't be affected considering there are another two refineries on the east coast to obtain supply. Shell, internationally I think, are having financial problems as they are closing/have closed their Clyde refinery in Sydney.

No, they can get refined products in from Asia at lower cost, all without the need to continue maintenance and upgrading refineries here.

BP and Caltex in Brisbane are both shaky, I expect one to go and a agreement on operating the remaining one..

[Road_Warrior]

The refinery in Wait Awhile isn't going anywhere.

[FPV GTHO]

Originally Posted by Road_Warrior

The refinery in Wait Awhile isn't going anywhere.

I guess geography is in its favour there.

[BroadyFord]

Doesn't bode well for Geelong - Shell, Alcoa and Ford (biggest employers in region) all have an uncertain future.

Centrelink could end up as the biggest employer!

[flappist]

This may have an even bigger effect. Melbourne has always had the cheapest LPG in Australia by a fair amount as it is mostly produced there and is a lot more difficult to transport than other fuels.

I wonder how loud the screaming will be if Melbourne prices rise to match those in the other states....

[saber]

Originally Posted by flappist

This may have an even bigger effect. Melbourne has always had the cheapest LPG in Australia by a fair amount as it is mostly produced there and is a lot more difficult to transport than other fuels.

I wonder how loud the screaming will be if Melbourne prices rise to match those in the other states....

Not what many happy LPG using customers wanted to hear :(

[Dr Smith]

Originally Posted by flappist

This may have an even bigger effect. Melbourne has always had the cheapest LPG in Australia by a fair amount as it is mostly produced there and is a lot more difficult to transport than other fuels.

I wonder how loud the screaming will be if Melbourne prices rise to match those in the other states....

Maybe the refiners need to organise a JV where they co-own a giant new refinery and produce all their needs in one shared plant which has the same capacity as the Asian plants often referred to. The Australian dollar won't stay high forever once the US and Europe "pull their fingers out".

Looked at Shell Geelong's website and the following made my laugh in an ironic, dis-satisfied way....going to have to edit this aren't they, ....
http://www.shell.com.au/aboutshell/w.../about-us.html

Thank you for visiting Shell Geelong refinery’s website to learn more about our operations.
Shell has been an integral part of the Geelong region for the past 55 years and like many other businesses, we have evolved to adapt to changing social and market conditions. However, one aspect remains unchanged and that is the calibre of our employees who are undoubtedly the foundation of the business.
Being a part of a global organisation has helped build our skills base. When we embark on complex projects, we can call on the global expertise within Shell to work with our contractors and us. This has built a base of skills in Geelong, which supports others and us in the manufacturing sector.
We also train apprentices each year through G-Force Recruitment. In addition, the refinery’s human resources department works with local secondary schools to inform them of the opportunities within manufacturing and to support students who want to pursue this career path.
These initiatives are examples of how we aim to ‘build capacity’ within our industry. Building capacity is something we also seek to do in our community, with great support from our Community Advisory Panel (CAP). The CAP has helped us to broaden our engagement with the local community and to understand and help meet community members’ needs.
Through our community development work, which includes Employee Community Grants and three social investment programmes, the refinery invests hundreds of thousands of dollars in our neighbourhood each year.
Through these initiatives we ensure the continued relevance of our operations, while helping build our community into a better one in which to work and live.
Mark Schubert
General Manager

[mik]

A bit more self sufficiency going out the window, most unfortunate.

[Silver Ghia]

So there will be more dependence on fuel supplies from Asia.

Just when Nth Korea is looking threatening.

Very short sighted.

[flappist]

Originally Posted by Silver Ghia

So there will be more dependence on fuel supplies from Asia.

Just when Nth Korea is looking threatening.

Very short sighted.

Did anyone else notice the irony in North Korea declaring the war on USA on the day the remake of "Red Dawn" was released on DVD/BluRay here.....

[mik]

maybe Kim Jong saw the movie flappy , it`s hard to know what this bloke(Kim Jong un) will do next, he`s unpredictable .

[ryeman]

Bring back COR (commonwealth oil refinery)
But seriously this has been on the books for the last decade...(return on equity) roe has been abysmal for some years now and the money required to do a serious update to meet new stricter standards just won't get approval from the transnational shareholders...lucky to see any go ahead with the significant expenditure required.

[Bossxr8]

Originally Posted by BroadyFord

^^ Update: Shell will try and sell refinery but will close if no buyer found.

They won't close, but will convert it to a fuel import terminal, like the other one that did recently (BP?).

Originally Posted by jpd80

No, they can get refined products in from Asia at lower cost, all without the need to continue maintenance and upgrading refineries here.

BP and Caltex in Brisbane are both shaky, I expect one to go and a agreement on operating the remaining one..

And then they can pass the savings on to us motorists with lower prices per litre, oh wait

No chance in hell of that.

This sucks for the town, things are looking bad enough as they are at the moment. There's bugger all chance they will sell it cause who would want to buy it?

[Papa Smurf]

Amazing, Shell is making MILLIONS of $$$ and sponsors racing but is finding it hard to keep Geelong open? mmmm.

[Charliewool]

I'm starting to think the wackos that protested here a couple of years ago against the multinational corporations might have been onto something? These business decisions are made to benefit a select few, to the detriment of the average joe blow and it's bloody WRONG! Their profits are astronomical, but still they "downsize" , "restructure" or any of a million new jargon verbs that sound pretty. And the government of the day couldn't give 2 hoots... These are peoples livelihoods, their futures, their dreams and does anyone at the helm of these massive enterprises give a stuff?

[ryeman]

Shareholders own the companies, of course 'nationalisation' is an option unless you believe in 'free' enterprise ...

[Road_Warrior]

Originally Posted by Charliewool

I'm starting to think the wackos that protested here a couple of years ago against the multinational corporations might have been onto something? These business decisions are made to benefit a select few, to the detriment of the average joe blow and it's bloody WRONG! Their profits are astronomical, but still they "downsize" , "restructure" or any of a million new jargon verbs that sound pretty. And the government of the day couldn't give 2 hoots... These are peoples livelihoods, their futures, their dreams and does anyone at the helm of these massive enterprises give a stuff?

Nope, and after spending 7 1/2 years in the petroleum industry in operations and retail, I am yet to be convinced otherwise.

[ryeman]

Maybe the Chinese are on to the new way of doing business???

[JG34JA]

This was interesting:

"But Geelong products are niche, which puts Shell "in a different place" with potential buyers.

Niche products include aviation gas, bitumen, high octane gas, and solvents and chemicals for other industries.

Mr Smith also said it was inappropriate for Shell to seek financial assistance from the Federal Government to prop up operations in Geelong."

http://www.businessspectator.com.au/...elong-refinery

It seems a pretty handy refinery.

[cobramania]

Originally Posted by JG34JA

This was interesting:

"But Geelong products are niche, which puts Shell "in a different place" with potential buyers.

Niche products include aviation gas, bitumen, high octane gas, and solvents and chemicals for other industries.

Mr Smith also said it was inappropriate for Shell to seek financial assistance from the Federal Government to prop up operations in Geelong."

http://www.businessspectator.com.au/...elong-refinery

It seems a pretty handy refinery.

I'm not exactly sure what makes/puts Shell's Geelong refinery "in a different place" with Niche products?

Both BP's WA & Brisbane refineries, both Caltex's Sydney & Brisbane refineries & Mobil' Altona refinery make all those products & more too.

I think someone's just talking it up for the media?

[Bossxr8]

Originally Posted by cobramania

I'm not exactly sure what makes/puts Shell's Geelong refinery "in a different place" with Niche products?

Both BP's WA & Brisbane refineries, both Caltex's Sydney & Brisbane refineries & Mobil' Altona refinery make all those products & more too.

I think someone's just talking it up for the media?

From what i've read, Shell are the only ones that make Avgas in Oz.

Interestingly they have spent a bucketload of money over the last few years on a pipeline to Avalon airport, and a brand new water recycling plant. All up they have spent in excess of $10 million dollars over the past few years on this stuff and its only just been, or close to be, finished, and now they announce this. What a waste of money.

[cobramania]

Originally Posted by Bossxr8

From what I've read, Shell are the only ones that make Avgas in Oz.

From the BP web site.
Bulwer Island’s product range includes:
Petrol – Unleaded, Premium Unleaded
Diesel fuels
Aviation fuel, including jet fuel and aviation gasoline
Bitumen
Fuel oil
Hydrogen
Kerosene
LPG (including propane and butane)

Kwinana’s product range includes:
Petrol – Unleaded, Premium Unleaded, BP Ultimate and BP Opal
Diesel fuels
Aviation fuel, including jet fuel and aviation gasoline
Bitumen
Fuel oil
Hydrogen
Kerosene
LPG (including propane and butane)

The 2 Caltex refineries & Mobil's Altona refinery make Jet Fuel, but not AVGAS, both BP refineries make both Jet Fuel & AVGAS.
I can only go on what the web sites say, I don't know anyone working at the BP refineries, but I doubt they'd list AVGAS if they didn't make it?

[Sprint XR8]

Originally Posted by Bossxr8

From what i've read, Shell are the only ones that make Avgas in Oz.

Interestingly they have spent a bucketload of money over the last few years on a pipeline to Avalon airport, and a brand new water recycling plant. All up they have spent in excess of $10 million dollars over the past few years on this stuff and its only just been, or close to be, finished, and now they announce this. What a waste of money.

The pipeline works at Avalon had nothing to do with the airport. A pipeline has run from the Corio refinery to Newport since the 1950's. In 2004 it was discoved that fuel had been leaking from the pipe undetected for a number of years near Avalon. Shell have spent millions buying the contaminated farmland and trying to pump out the contaminated groundwater with network of bores hooked up to a treatment plant.
http://www.wetrocks.com.au/media/fil...Fuel_Spill.pdf

Mobil have a similar issue with the pipeline running from the Altona refinery to its Yarraville terminal. In 2006 the 1950's built pipeline was found to have leaked over the previous 2 years over 600000lt of fuel into a residential area of Newport.
http://www.theage.com.au/victoria/mo...204-1qyzh.html

[Bossxr8]

Originally Posted by cobramania

From the BP web site.
Bulwer Island’s product range includes:
Petrol – Unleaded, Premium Unleaded
Diesel fuels
Aviation fuel, including jet fuel and aviation gasoline
Bitumen
Fuel oil
Hydrogen
Kerosene
LPG (including propane and butane)

Kwinana’s product range includes:
Petrol – Unleaded, Premium Unleaded, BP Ultimate and BP Opal
Diesel fuels
Aviation fuel, including jet fuel and aviation gasoline
Bitumen
Fuel oil
Hydrogen
Kerosene
LPG (including propane and butane)

The 2 Caltex refineries & Mobil's Altona refinery make Jet Fuel, but not AVGAS, both BP refineries make both Jet Fuel & AVGAS.
I can only go on what the web sites say, I don't know anyone working at the BP refineries, but I doubt they'd list AVGAS if they didn't make it?

I was only going off what I read in the paper about it, they claimed they are the only ones that make Avgas. But don't believe everything you read, blah, blah, blah. Maybe they do, maybe they don't, I dunno.

[Bossxr8]

Originally Posted by CoupeXB

The pipeline works at Avalon had nothing to do with the airport. A pipeline has run from the Corio refinery to Newport since the 1950's. In 2004 it was discoved that fuel had been leaking from the pipe undetected for a number of years near Avalon. Shell have spent millions buying the contaminated farmland and trying to pump out the contaminated groundwater with network of bores hooked up to a treatment plant.
http://www.wetrocks.com.au/media/fil...Fuel_Spill.pdf

Mobil have a similar issue with the pipeline running from the Altona refinery to its Yarraville terminal. In 2006 the 1950's built pipeline was found to have leaked over the previous 2 years over 600000lt of fuel into a residential area of Newport.
http://www.theage.com.au/victoria/mo...204-1qyzh.html

Old article but shows the plan was in place, I don't know wether it was completed or even started though.

Shell, Avalon pipeline plan

Danny Lannen | February 17th, 2011






AVALON Airport and Shell Geelong Refinery have forged partnership as plans for a jet fuel pipeline between the neighbours take off.
Airport chief executive Justin Giddings hopes to see earthwork under way before the end of the year, heralding a new competitive era for the airport on domestic and international markets.

Planning of a $250 million Geelong-Melbourne rail link and station is also under way with mobilising of a Victorian Government working party.

Mr Giddings said the pipeline would be little more than one kilometre long but would bring lasting benefits.

``We're almost forming a partnership with Shell to deliver the outcome, and that's looking good,'' Mr Giddings said.

``It's very, very early stages but there's nothing to suggest it won't happen.

``By putting this pipeline in we're literally tying ourselves to Shell forever, so really we need them to survive and prosper and be able to deliver the fuel at reasonable price, but they need us to grow.''

Avalon will be seeking up to 50 million litres of fuel a year at the outset, hoping the volume would rapidly grow with securing of international flights and millions more passengers.

Direct piping would save up to 10 cents a litre by eliminating cost of transporting fuel from Melbourne and slice up to $17 off an international airfare.

Chiefs believe the cuts would make Avalon the most cost-effective airport in the nation.

Fuel is now piped from the refinery, through airport land to Melbourne and trucked back to Avalon.

Shell Geelong Refinery communications manager Joan McGovern said the newly-forged partnership would be positive.

``It will allow us to supply all of Avalon's fuel which is really important. The other thing is it will give the airport support for international trade and I think a big benefit too, it will take trucks off the road.''

The Victorian Government has backed building of the pipeline and formed a rail link project group, with work fulfilling a pre-election pledge.

``I must say everything seems to be on track, they've been very positive about it,'' Mr Giddings said.

``There's been a lot of discussion, a lot of design meetings.''

[Franco Cozzo]

What happens if there is a war in the Asia region where the ship picks up the oil to come through to Australia?

We wouldn't even have to be involved in that war for it to effect us.

Horrible idea IMO.

Maybe government should spend less on armoured vehicles and maybe look into buying the oil refinery.

Obviously there is more than one refinery here in Australia, but for how long?

[BroadyFord]

Make no mistake, Geelong WILL close - there will be no buyer.

Refining margins in Australia are wafer-thin, if existent at all and, again, the Australian dollar is mostly to blame.

Additionally, the input costs of operating the refinery combined with the facility's age and small scale will make Geelong a very unattractive investment for any company.

We now only have Mobil left, which is only about half the size of Geelong and much older too. Can't see that lasting long either.