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BP Kwinana Refinery - Investment Continues

Release date: 07 September 2012

Strategy to Reduce Risk and Improve Performance Remains on Course.

The latest upgrade to BP’s Kwinana refinery near Perth was today formally opened by The Hon Gary Gray AO, Member for Brand.

Built at a cost of $11m the new laboratory complex is where tests on all WA-manufactured products are carried out to ensure that they meet Australian Fuel Standards.

The stand out feature of the new laboratory is a $2.5m air handling system that includes fume protection cupboards and fume extraction. The laboratory also features a separate analyser workshop, a state of the art chemical store and an Australian Standard safety system including safety showers and fire and gas detection.

While the external environment for the Australian refining sector remains challenging and structural changes are underway, BP Australia’s manufacturing strategy remains unchanged; the company continues to invest in its Australian refineries to upgrade infrastructure, reduce risk and improve reliability. Over the past 3 years BP has invested over $140 million in projects to optimise the refinery, improve reliability and increase production of cleaner fuels.

According to the refinery managing director, Des Gillen, the Kwinana refinery boasts some of the best refining hardware and most energy efficient refining configuration in Australia, and some of the best people in the business.

“While we continue to face a very tough business climate, we believe we can build a successful business. It’s not going to be easy and it will require a relentless focus on delivering best in class in performance in every area of the business. But fundamentally, everything starts with being safe – we need to drive down risk and build a culture of continuous improvement.”

In opening the new laboratory, the Hon Gary Gray said, “For nearly sixty years the BP refinery has been a cornerstone of WA’s economy and our energy security.”
“It is the biggest refinery in Australia and this impressive laboratory is an investment not only in the science of manufacturing high quality fuels, but it is also a symbol of the ongoing investment in the refinery’s and the region’s future.”

Notes to editors:

The BP refinery founded the Kwinana Industrial area when it was built in the 1950s. It remains the only oil refinery in WA and continues to play a pivotal role in Western Australian energy security and economic prosperity. BP manufactures 80% of the State’s fuel for road, rail, air and marine transport and contributes 1% of Gross State Product and 11% of the State’s Manufacturing Sector.

Recent capital investment projects at the refinery include;

Laboratory: The state-of-the-art $11M laboratory houses all the fuel testing facilities, including the engines used to test octane, in a safe environment. The G10 Project: this debottlenecking project allowed the refinery to increase its production of low sulphur diesel. The project was completed in mid-2011 for an investment of over $50M.

LPG Upgrade: Commissioned in September 2011 with an investment of more than A$60M, the project included the installation of two mounded (half-buried and totally covered in dirt) butane product storage drums that increased butane (a component of LPG) storage to 1930 cubic meters – an increase of 135%. Also there was a new truck gantry and a number of safety improvements to the refinery’s LPG facility. The new facility enables the refinery to make more Automix in summer. Automix is a mixture of propane and butane suitable for transport vehicles.



Ends
Further information:
Name: Jamie Jardine
Office: BP Australia Press Office
Phone : 03 9268 3534 or 0410 479 002
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