Two major Viva Energy projects facing delays

Two major projects at Geelong’s oil refinery are facing delays, with new state rules delaying one by at least a year.

Viva Energy CEO Scott Wyatt at their Geelong refinery. Aaron Francis

Two major projects at Geelong’s oil refinery are facing delays, with new state rules delaying one by at least a year.

Viva Energy announced ongoing supply delays would push back plans to build facilities to transition to low-sulphur fuel and a new processing unit until late 2025.

The proposed works were in response to an overhaul in Australian fuel quality standards and the federal government’s refinery upgrades program.

Viva Energy CEO Scott Wyatt told investors on Tuesday the company had applied for a waiver as delays meant the project wouldn’t meet federal deadlines.

“Mobilising for a project of their scale and capability has created some delays in terms of getting contracts in place and in terms of delivery schedules, which is pushing the project out,” he said.

Under the plans, a new gasoline treatment unit would use hydrogen to remove sulphur from gasoline blend components.

Originally slated to begin in 2024, the project now faces a nine-month delay.

It came amid news the oil giant faced a hit to its half-year earnings due to mechanical issues at the local refinery.

The company reported a net loss of $77.5m in its latest half-yearly update to shareholders.

It’s understood a crane dropped equipment during June maintenance, with repairs due to be completed next month.

Mr Wyatt also revealed a proposed floating gas import terminal in Corio Bay was at least a year off after being sent back to the drawing board by the state government.

“We’re still working closely with the state government to understand what further information they’re looking for,” he said.

“It’s going to delay the project from where we anticipated. I think it’ll probably take us through most of next year to complete all those necessary studies.”

State planning minister Sonya Kilkenny sent the $250 million project back to the drawing board in March, ordering it to undergo a supplementary environmental effects statement to better understand the project’s potential impacts.

Originally published as Two major Viva Energy projects facing delays