Coogee, Qube in $260m fuel storage program

Chemical manufacturer Coogee and infrastructure giant QUBE Holdings have secured grants from the federal government to develop diesel storage projects in Western Australia.

Ten projects will share in $260 million in funding, as part of the government's Boosting Australia’s Diesel Storage program.

Energy Minister Angus Taylor said the investment would increase the volume of Australia’s diesel stock, create jobs, and help keep fuel prices low.

WA-based Coogee manufactures a range of chemicals – including chlorine, hydrochloric acid, methanol, and sodium cyanide – at operations in Kwinana.

The company has committed to building 100 megalitres of storage.

Meanwhile, Sydney-based QUBE will allocate funding toward its proposed 110ML Lumsden Point plant at Port Hedland, in WA, and 73ML Port Kembla plant in NSW.

Other businesses to receive funding are Stolthaven Australia, Park, Viva Energy Group, Terminals, Airport Development Group, and Ampol.

The grants will cover as much as half of the total expenditure required for each project, with construction expected to begin this year and be completed within three years.

The government hopes Australia can build 780ML of diesel storage.

“Diesel is vital to Australia’s energy security as it keeps our economy running,” Mr Taylor said.

“It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture.

“Many of these projects are located in strategic regional locations, which will help minimise shortages of diesel during peak usage periods and drive over $636 million of public and private sector investment into these areas.”

He said the projects would also deliver 202ML of additional petrol and jet fuel storage funded by the private sector.

The program, supported by a fuel security package announced in the 2020-21 budget, will assist the industry in meeting a new minimum stockholding obligation (MSO).

The MSO requires manufacturers to hold petrol, jet fuel, and diesel stocks at or above pre-COVID national average levels from mid-2022.

Importers will be required to hold a 40 per cent increase in diesel stocks from mid-2024.