Queensland's diesel fuel users can look forward to a greater assurance of supply, thanks to construction beginning this month on the state's largest diesel-only storage facility, sited at the Port of Brisbane precinct.
IOR announced its plan for the 110 million litre facility at its Lytton terminal in February but the foundations for the first tank have just been poured.
It was described as a momentous occasion for the Queensland-based company.
Head of strategy Nick Mackenzie said that once completed, the import terminal would improve the state's fuel security, especially for the transport, agriculture and resources customers that form a large proportion of its customers.
"This is all about supply security, as a business and as an industry," he said. "We saw the need coming but this year has highlighted it."
Mr Mackenzie said they had long-term contracts with suppliers in place, predominantly from eastern Asian countries, without which they would struggle to supply customers, but said that as they grew, a need for their own supply security had become apparent.
"Queensland is the largest diesel market in Australia, and the amount of storage is not sufficient," he said, adding that 'stock-outs' had occurred in Brisbane and North Queensland on the back of February's flooding.
"They are becoming increasingly frequent in Queensland - that's part of global supply issues, plus we had four vessels in Moreton Bay harbour waiting to come in," he said. "That's what drove the early price pressure."
IOR has a similar 81ML facility in South Australia, and IOR's general manager of infrastructure, Drew Leishman said they had taken the best bits of that and built something better at Brisbane.
The project involves repurposing IOR's existing 50ML crude oil storage tank for diesel fuel storage and constructing two new tanks with a combined capacity of 60ML.
In addition, a new tanker truck loading area designed to accommodate up to AB triples, will be constructed, along with a new wharf deck and marine unloading arms, a 3.2km above and underground pipeline connecting the terminal to the new wharf deck, and all new safety and ancillary systems.
The two marine loading arms will accelerate throughput of the product, which Mr Mackenzie said was what set the facility apart.
Expecting up to 20 trucks through the terminal a day, mostly B double and A double combinations, they will be able to be filled simultaneously.
The project will create over 260 jobs in construction, and to date, over $14 million in project expenditure has been awarded to local businesses.
The total budget for the project is approximately $50 million and IOR expects that up to 90 per cent of this will be awarded to Queensland suppliers.
To accelerate the project's completion, the state government has provided IOR with a $15 million dollar loan, announced by Deputy Premier and Minister for State Development, Steven Miles.
IOR's managing director Stewart Morland said they were grateful for the support and proud to have the government on board as partners in providing fuel security to Queensland, especially the industries that are critical to the livelihoods of Queensland businesses.
"We are not going to make much out of this, but increasing fuel availability for our customer base are reasons 1, 2 and 3 for doing it," Mr Mackenzie said. "Reason four is to do it efficiently."
The expected completion date is June 2023.
Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
