Industry News

Largest diesel only import terminal set for QLD

Construction of new fuel importing facilities and storage tanks at Port of Brisbane and Lytton Fuel Import Terminal have been announced.

The planned upgrades will create new importing and storage facilities to allow for the storage of significant quantities of domestic fuel with an additional 110 million litres of diesel storage being injected into the Queensland economy.

It will be the largest diesel only import terminal in Queensland and one of the few in Brisbane with the capability to receive international shipments of diesel via LR2 vessel.

To facilitate the project, the Port has changed the tenure of the Fisherman’s Island crude oil berth so that this can be common user infrastructure.

Construction works commenced on 1 February and will be completed by June 2023.

The Lytton Terminal facility was constructed in 1984 and was acquired by IOR in 2008.

The terminal previously stored crude oil received from road tankers and sea carriers berthed at the Wharf and transferred crude oil to the neighbouring Ampol Refinery.

Deputy Premier and Minister for State Development Steven Miles said the funding will go to The IOR Group, which is commissioning approximately $50 million of works.

“Over recent periods, Queensland has been the largest user of diesel in the country, so stocking up the state’s supplies will relieve any anxiety about fuel shortages so industry can keep working,” he said.

“It will also hold sufficient fuel to meet the Federal Government’s new long-term fuel security goal when it applies from 1 July 2022,” said Miles.

The improved facilities are anticipated to increase productivity at the Port of Brisbane and Lytton Fuel Terminal, bringing with it more economic benefits.

A $15 million loan has been secured from the State Government’s Building Acceleration Fund to accelerate the development.

Works will include constructing a new section of wharf deck to support a new Marine Unloading Arm.

Underground and aboveground pipelines will also be constructed to connect the Lytton Fuel Import Terminal to the Port of Brisbane wharf deck.

Other works at the Lytton Fuel Import Terminal include the repurposing of existing 50ML tank for diesel storage; two new tanks for diesel storage and one new tank for biodiesel additive; upgrade to containment bund; electrical infrastructure upgrades; and new diesel loading pumps and loading bays.

While the State Government is providing a $15 million loan to accelerate the development, IOR will contribute the remaining funds towards the $50 million scope of works.

IOR Managing Director and CEO Stewart Morland said that IOR was proud to be a champion for fuel security in Queensland.

“IOR proudly fuels transport, agriculture, resources, and several other industries essential to the success of our economy and the livelihoods of all Queenslanders. The Terminal will provide fuel security to these industries and contribute to industry productivity in the years to come,” he said.

“With growing demand for diesel in Brisbane, we’re seeing congestion at many terminal sites. Upon opening, the Terminal will open access to third parties and in doing so will help relieve congestion, reduce the time to load, accelerate productivity, and increase competition in the Queensland fuel market,” said Morland.

“We’re a Queensland business, supporting Queenslanders and more than $14 million in project expenditure has been awarded to local Brisbane businesses to date. We are in negotiations with other local businesses to support components of the project.”

Port of Brisbane Interim Chief Executive Officer Neil Stephens congratulated the State Government on their collaboration with IOR, one of the Port’s long-term customers.

“This joint investment will not only create near-term construction jobs, but it will help ensure the Port of Brisbane can continue to effectively service the fuel needs of our growing region,” he said.

“It comes on the back of IOR’s recent long-term lease extension at the Port of Brisbane. We thank them for their investment and commitment to Australia’s premier multi-cargo port.”

The project will support over 260 construction and eight operational jobs.

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