Triangle Energy has met with state and federal governments to find a solution after BP announced the shutdown of its Kwinana Refinery in Western Australia.
The company has held meetings over the past fortnight with department representatives of the Federal Minister for Energy and Emission Reduction and the State Minister for Mines and Petroleum, Energy and Industrial Relations.
Triangle has confirmed that discussions have also begun with relevant third parties to discuss the future off take alternatives for both the company and the other Western Australian oil producers currently delivering their crude oil production to the BP Refinery in Kwinana.
“The meetings have been positive and there has been full recognition of the role oil will continue to play in Australia’s energy requirements,” Triangle said in a statement.
The company is evaluating alternate opportunities for the crude oil produced at the Cliff Head project in the Perth Basin after BP announced it would cease fuel production at the Kwinana Refinery.
BP announced last month that it planned to stop fuel production at the Kwinana Refinery and convert it into a fuel import terminal.
Triangle advised that BP would continue to operate the refinery in its current state for many months while it completes planning for the conversion into a fuel import terminal.
BP has also committed to discussions to reach an understanding of what the proposed conversion will mean under the Cliff Head crude oil supply arrangement.
However, the planned conversion is not expected to take effect for months, during which time the Cliff Head oil field will continue to produce and deliver its product to the BP refinery in Kwinana under its existing agreement with BP.
According to BP, regional oversupply and sustained low refining margins mean the Kwinana refinery is no longer economically viable.
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