New WA oil refinery impact on Pilbara Ports

A PROPOSED new oil refinery for Western Australia is predicted to have a significant impact on the Port of Dampier.

A $4 million state and federal-funded feasibility study is under way into a large‑scale facility proposed for Karratha by Perdaman, the WA‑headquartered industrial group already building a Pilbara urea plant.

Under the concept being examined, Perdaman would build and operate the refinery as a private facility, with access to concessional finance considered as part of the study.

If built, it would be Australia’s first new refinery in more than 60 years, restoring west‑coast refining capacity lost when BP closed Kwinana in 2021.

Because Australia produces limited suitable crude, any new refinery would rely heavily on imported crude oil, creating direct implications for Pilbara Ports Authority.

A Karratha‑based refinery would require:

• regular crude tanker arrivals into Dampier;

• expanded liquid‑bulk scheduling;

• additional storage and pipeline connections between port lands and the refinery precinct; and

• updated dangerous‑goods and spill‑response protocols.

According to the Commonwealth’s fuel‑security policy, crude oil is easier to store long‑term than refined fuels, making Dampier a likely strategic node in the Commonwealth’s fuel‑security architecture.

A refinery of meaningful scale would produce diesel, petrol, jet fuel and marine fuels for both regional and state‑wide distribution. This would reshape WA’s fuel‑logistics chain.

Pilbara Ports would become a northern distribution hub for mining, energy and coastal shipping.

Fremantle/Kwinana would remain WA’s largest fuel terminal but could see shifts in north–south product flows, including new coastal tanker movements between Dampier and Kwinana.

Prime Minister Anthony Albanese and WA Premier Roger Cook announced the study earlier this month, describing it as part of a broader national effort to strengthen fuel security amid global supply volatility.

The study forms one component of the Commonwealth’s $15‑billion energy‑security package.

Federal resources minister Madeleine King said WA’s lack of refining capacity had become a strategic vulnerability.

“Since the closure of Kwinana, Western Australia has relied entirely on imported refined fuels,” she said. “A refinery in the Pilbara would significantly strengthen national fuel security.”

Any refinery would require major environmental approvals at both state and federal levels, including port‑adjacent emissions assessments, hazardous‑liquid handling approvals and updated marine‑pollution response plans.

Pilbara Ports would likely be involved in planning for new liquid‑bulk berths, navigational assessments and emergency‑response upgrades.

No construction timeline, cost estimate, capacity figure or engineering design has been released. All technical and financial details will depend on the outcome of the pre‑feasibility study.

Perdaman has not yet issued a detailed public statement beyond its acknowledgement of the government‑funded study.