New $3.2b 'fuel security' project to create 1800 jobs

COMPANY reveals plans to begin construction of a US$2.5 billion project in Gladstone next year.

What we know:

- The project will cost $3.2 billion (US$2.5 billion)

- Casper Energy reveals plans to start construction within the next six months for its Gladstone oil refinery and diesel import terminal.

- The oil refinery will create 1800 construction jobs and give Australia fuel security, producing up to 80,000 barrels a day.

- The terminal is expected to create 180 construction jobs.

UPDATE 4.20pm:

"HEAR hear" was what Gladstone's state member Glenn Butcher said when he heard jobs would be given to locals in the $3.2b Casper Energy project.

Mr Butcher said it was "music to his ears" knowing the oil refinery and diesel import terminal would provide more employment for Gladstone job seekers.

He said since the wind down of three LNG plants at Curtis Island there has been a crucial need for more construction work in Gladstone.

Listen: Glenn Butcher explains the need for local jobs:

UPDATE: 2pm:

CASPER Energy has been divided into two businesses for a US$2.5b Gladstone project and they plan to preference a local workforce.

The oil business which will turn crude oil into mainly diesel but possibly other carbon based products will have Gladstone Oil Holdings and Gladstone Oil Refinery.

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"The clue is in the name," Casper Energy's chief executive officer Duncan McKenzie said.

 "We want to keep it a Gladstone based company with a local workforce."

HOW IT WAS PLANNED | 

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The holdings business will be a 75 mega litre diesel import terminal constructed at Fisherman's Landing, Mr McKenzie said at the Gladstone Engineering Alliance Major Industry Conference today.

The terminal business will work three fold for Gladstone according to Mr McKenzie, using an underutilised berth, reduce the number of trucks in Gladstone and provide fuel security for Australia.

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He said Casper Energy had secured commercial partnerships, one of which with a company with the largest oil reserves in the world.

He said construction would start within the next six months with the first cargo of diesel being dispatched from Fisherman's Landing in late 2018.

He said the terminal would create 180 construction jobs.

FAST FACTS |

• Development of the refinery is expected to take six years for
• Product to be refined will be medium and heavy-sour high residue crude oils into high quality refined products, including diesel and other carbon products.
• In the very near future Australia is expected to have only four of an original eight oil refineries

Earlier 1pm:

CASPER Energy plans to construct a $2.5b oil refinery and diesel import terminal in Gladstone,  the company's CEO revealed to Gladstone businesses today.

Speaking at today's Gladstone Engineering Alliance Major Industry Conference, chief executive officer Duncan McKenzie said there were two parts of the Gladstone business, a diesel import terminal at Fisherman's Landing and an oil refinery.

Casper Energy chief executive officer Duncan Mackenzie reveals his plans to build an oil refinery in Gladstone. Picture: Campbell Gellie

He said construction for the import terminal would start in 2017 with the first arrival of diesel landing in Gladstone in 2018.

The construction of the terminal would employ about 180 people.

The construction of the oil refinery will create 1800 new jobs. . Picture: Luka Kauzlaric

Mr McKenzie said he would employ locals and there would be no fly-in-fly-out workers.

Member for Gladstone Glenn Butcher said, "hear hear".

The oil refinery will take six years to get going but will create 1800 construction jobs and give Australia fuel security, producing up to 80,000 barrels a day.

More to come