Viva Energy has recorded an improvement in its refinery operations and financial performance compared to the first half of 2020 but remain challenged by COVID-19 impacts.
Outlined in the company’s 2021 half year results, the Geelong Refinery operated at full capacity, with intake at 21.4 million barrels (MMBLs) and availability at 98 per cent, compared with the same period last year where the refinery operated in a hydro-skimming mode in May and June 2020.
Increased production has led to higher variable operation costs for the period.
During the first half of this year, the refinery received $40.6 million from the Federal Government’s temporary refining production payment.
This program gas been succeeded by the Federal Security Services payment (FSSP), which commenced on July 1, 2021 and will conclude on June 30, 2027.
With the FSSP in place, Viva Energy is proceeding with major maintenance activities that were deferred from 2020.
The expected capital expenditure is $25-$35 million, with the major maintenance activity expected to negatively impact refining intake by 0.9 MMBLs in the quarter ending September 30, 2021.
The company is also continuing to advance preliminary studies on the low sulphur gasoline and other associated capital projects.
The gas terminal project, which is targeting first gas by 2021, subject to final investment decision.
Recent reports continue to support the need for new sources of gas as traditional production declines given the important role gas plays in the economy.
Project design and environmental studies are well advanced ahead of head the planned lodgement of the environmental effect statement documentation later this year.
Viva Energy continues to works with its commercial partners to develop contractural documentation which are expected provide substantive agreements for terminal capacity.
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