NSW would be left with no oil refining capability and national fuel security would be jeopardised if Caltex shuts down its Australian refineries, the CFMEU Mining and Energy Division said today.

Caltex has flagged closing its refineries in Sydney and Brisbane, following on from Shell’s announcement last year it plans to close its refinery at Clyde.

Five hundred jobs are to be lost from Shell’s Clyde operation, exacerbated by the potential 800 job losses if Caltex goes ahead and shuts its refineries.

Shell announced last year it would use the Clyde site as a storage and distribution site for imported refined fuel, said CFMEU NSW Energy District Secretary Lorraine Usher.

“When Shell announced it would close Clyde, it was quick to reassure there would be no threat to supply – as Sydney still had another refinery. Now that Kurnell’s future is also at risk, where does that leave us?

“NSW is Australia’s most populous state and Sydney our biggest city. To lose our entire refining capacity is a risk to long-term fuel security.

“Furthermore, these closures would put Australia’s oil refining capacity in jeopardy, to the point Australia would struggle to meet our defence fuel supply needs.

“Importing refined fuel from Asian mega-refineries may be more cost-effective for businesses like Shell and Caltex. Writing down the value of their assets is a cynical manoeuvre to justify closure.

“However there are serious long-term implications. War or natural disaster in the Asia-Pacific could lead to a fuel supply crisis for Australia.

“The NSW and Federal Government must work with industry and unions to develop plans for Australia’s long-term fuel supply.”