Caltex investment to boost fuel supply capability in WA
Monday, 30 August 2010 08:03
Caltex Australia announced plans to proceed with a major expansion of its fuel terminal at Port Hedland in Western Australia in a move set to add much-needed supply capability to the resource-intensive state's diesel market.
The new investment will provide two large 20 million litre diesel tanks and a road tanker loading facility. There is also provision for further investment in petrol storage if required.
Caltex has awarded the construction contract to Transfield Services and construction is expected to begin in September this year, with the terminal due to commence operations in late 2011.
Caltex's National Manager Distribution, Mike Raleigh, said the project was part of the company's overall infrastructure improvement program and ongoing commitment to the Australian market.
The investment gives Caltex a truly national supply chain and provides significant additional capability for servicing the mining and offshore oil and gas industry in the north west of Western Australia, which currently has limited choice.
"Fuel is typically the second-biggest cost that the resource industry faces," Mr Raleigh said. "Caltex is strengthening its base business and one of the ways we can do that is to ensure we have the right infrastructure in the right places to capture key fuel growth markets in Australia."
"We currently have a small presence in supplying diesel to the north west of Australia, however meeting the needs of existing and potential new customers will require additional storage capacity to ensure reliable supply. This project will ensure secure, reliable and more cost-efficient supply to our customers for many years to come."
Caltex is looking at opportunities to expand its supply chain capability throughout Australia under its infrastructure improvement program.
Recent projects completed include the commissioning of a second diesel hydrotreating unit at the Lytton refinery and a 27 million litre diesel tank at Mackay in Queensland. Caltex has now commenced construction of a second 27 million litre diesel tank at Mackay and a second 15 million litre diesel tank at Gladstone to meet the expanding needs of the mining industry.
Supply capability has been further enhanced by replacing two 20 year old vessels and entering into new fixed rate time charter agreements with Teekay Shipping for the modern bulk fuel tankers Alexander Spirit and the Hugli Spirit.
"We are very committed to the Australian market in providing long-term secure fuel supply and the right infrastructure that will enable a strong supply chain so we can meet the growing needs of our existing and potential new customers," Mr Raleigh said.
