Change to Caltex's fuel supply chain in Queensland

03 July 2015


Following the closure of BP's Bulwer Island refinery, Caltex has adjusted elements of its Queensland fuel supply chain.


Caltex previously used 40,000-tonne tanker Alexander Spirit to distribute surplus fuel products from the Lytton refinery to other ports along the east coast.


However, this has changed in light of the closure of BP's refinery and a new supply agreement by Caltex with BP effective from 1 July.


This agreement means that the surplus petrol and diesel from Caltex's Lytton refinery is now supplied to BP in Brisbane instead of needing to be shipped elsewhere by Alexander Spirit.


The safe and reliable supply of fuel across the state will be unaffected by this change.


Caltex regrets that about 36 crew positions on the Teekay Shipping Australia-operated Alexander Spirit will be affected.


Teekay is managing the transition and Caltex has been assured the affected crew members will be provided with their full redundancy entitlements.


Alexander Spirit will be redeployed to the international fuel supply chain, spending most of its time in international waters competing against every other ship importing fuel into Australia.


As an Australian company competing against multinational fuel suppliers, Caltex needs to ensure the ship's operational arrangements, including crewing, are aligned with industry so it is not at a competitive disadvantage.


Editors notes:

  • BP Australasia announced in April 2014 that it would halt refining operations at its Bulwer Island refinery in Brisbane by mid-2015.
  • Caltex Australia announced 2 April 2014 that it had signed an agreement with BP for the supply of petrol and diesel from Caltex's Brisbane refinery. The agreement does not include jet fuel.
  • Caltex will supply BP's petrol and diesel via a pipeline between the two sites
  • The 2007-built, 40,000-tonne Alexander Spirit was introduced to Caltex's supply chain as part of a ten-year time-charter commenced in 2009 (expiring in 2019)
  • Alexander Spirit has been used in a number of roles distributing fuel from Caltex's refineries at Kurnell (Sydney) and Lytton (Brisbane) to other ports along the east coast and to Tasmania
  • The Kurnell refinery closed in October 2014 and, with the closure of BP's Bulwer Island refinery, there is no longer any surplus refined fuel requiring shipping to other ports


Caltex Australia

With a commitment to Australia tracing back to 1900, Caltex has grown to become the nation's outright leader in transport fuel. Caltex supplies one-third of all Australia's transport fuels and is unique in this market for being the only major brand listed on the Australian Securities Exchange. Through its comprehensive supply chain, Caltex has forged its reputation for providing safe and reliable supply of high-quality fuels to a diverse number of customer segments, including retail, mining, agriculture, aviation, transport, small-to-medium enterprises, marine, automotive and government. Caltex is also one of Australia's largest convenience retailers and franchisors, with over 85% of its stores operated by franchisees.


Media contact

Sam Collyer

Senior Media & Communications Adviser

P: (02) 92505094

sam.collyer@caltex.com.au

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