The Albanese and Cook Labor Governments have announced a jointly funded A$4 million pre-feasibility study into building a major new oil refinery in Western Australia, a project that could become Australia’s first new large-scale refinery since the 1960s and significantly strengthen the nation’s fuel security.
The proposed refinery, to be developed by Perdaman in Karratha, is expected to create thousands of jobs, boost regional manufacturing and improve domestic supplies of diesel and other transport fuels, particularly for Western Australia’s regional communities.
Prime Minister Anthony Albanese and Western Australian Premier Roger Cook announced the initiative during a visit to Perdaman’s Project Ceres in Karratha, describing the proposal as a key part of Australia’s efforts to bolster energy sovereignty amid ongoing global geopolitical tensions.
Prime Minister Albanese said recent instability in the Middle East highlighted the importance of strengthening Australia’s domestic fuel production capability.
“The longer war in the Middle East goes on the greater the impact on Australia will be, and my Government will continue to do everything we can to shield Australia from the worst effects – and set us up for the future,” Albanese said.
“My Government’s working to advance Australia’s interests – not just in this crisis but going forward as well to ensure we can meet future challenges.”
The refinery proposal is the first project to be supported under the Albanese Government’s A$10 million feasibility program for new or expanded fuel refining capability and complements the Federal Government’s broader A$15 billion fuel security package.
Australia currently operates only two oil refineries—in Brisbane and Geelong—after four refineries closed under the former Coalition government.
If built, the Perdaman refinery would mark the country’s first new large-scale petroleum refinery in more than six decades and form part of both the Federal Government’s Future Made in Australia agenda and the Western Australian Government’s Made in WA strategy.
Perdaman‘s Founding Chairman and Managing Director Vikas Rambal has more than 30 years’ experience in business and a proven track record in delivering world-class businesses. Born in Delhi, India, Rambal qualified as a chemical engineer specialising in petrochemicals, spending his formative years at Bharat Petroleum (formerly Shell).
In 2023, Perdaman reached a major milestone with the commencement of construction of its Ceres Urea Plant in Karratha. The project is designed to use Australian natural gas to produce around 2.3 million tonnes of urea annually, supporting global food security while promoting sustainable agriculture and regional economic growth.
The Ceres project has received approximately A$475 million in government loans and is expected to create around 2,500 construction jobs and 200 permanent operational positions, while generating an estimated A$8.5 billion in public economic benefits.
Premier Roger Cook said expanding refining capacity would help secure fuel supplies for Western Australia’s economy and regional communities.
“This includes diesel to support the regional communities which drive WA’s economy and which have been most at risk amid this conflict,” Cook said.
“While many Western Australians remain anxious about our State’s fuel security, we are doing everything we can to address these concerns by working with the Commonwealth to provide steady and experienced leadership and continue delivering our Made in WA plan.”
Minister for Climate Change and Energy Chris Bowen said expanding Australia’s sovereign refining capability was a prudent response to increasingly fragile global energy supply chains.
“At a time when overseas conflicts demonstrate the fragility of energy supply chains, investing in further onshore sovereign fuel refining capability is a sensible and prudent response to secure our energy security,” Bowen said.
The broader A$15 billion fuel security package includes the establishment of a government-owned Australian Fuel Security Reserve, expanded fuel and fertiliser storage infrastructure, increased minimum fuel stockholding obligations, temporary fuel excise relief and interest-free loans through the National Reconstruction Fund to strengthen critical manufacturing and logistics supply chains.
The governments said consultation on the refinery proposal would continue following completion of the pre-feasibility study, with the project expected to play a central role in Australia’s long-term energy resilience and manufacturing capability.
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