GLADSTONE'S community leaders have said the announcement of a $700 million oil refinery project is fantastic news.
Speaking after the announcement on Monday, state MP Glenn Butcher told The Observer the project was the ideal solution now the LNG construction projects were winding down.
"This will mean that our construction workers will be able to stay in the region rather than having to take up FIFO jobs elsewhere," he said.
"This is the positive sentiment that's around the state at the present time: if you want to do business, come to Gladstone.
"This is exactly what our premier was saying when she visited here last week, that Gladstone is the powerhouse of Queensland."
Mayor Gail Sellers said she was excited by the prospect of another big industrial project for the region.
"We have all these different industries already. Now on top of that we'll have a crude oil refinery.
"This will stop the naysayers in their path - those people who spell doom about the future of our region."
Cr Sellers said she would "have the biggest smile on my face when I talk about the new project".
The next big thing
GLADSTONE'S next big thing is to be a $700 million oil refinery which will be built on State Development Land near Targinie.
A joint venture of US-based energy development company Eagle Ford Oil and Gas Corporation (ECCE) and Australian-based resource and energy asset developer Casper Energy Pty Ltd has been formed to create the state-of-the art refinery.
The project will employ 1000 workers during the construction phase and 300 permanent operational positions.
The joint venture partners on Monday announced the project would involve construction of a greenfield refinery incorporating new crude oil import infrastructure, heavy crude oil conversion refinery plant and a product storage terminal with a capacity of 100 million litres.
ECCE chairman Johannes Roux said in a release that this would be the first new refinery to be built in Australia in 50 years.
"It will be strategically beneficial to Australia's energy supply goals," he said.
The company expects the finalisation and approval processes to take 18 months, before construction can start.
The refinery is expected to be the most environmentally responsible refinery of its type, the statement said.
It is expected phase one of the project will be able to process up to 43,000 barrels per day of crude oil into high quality ultra low sulphur diesel and premium gasoline.
- Construction is expected to take four years
- Product to be refined will be medium and heavy-sour high residue crude oils into high quality refined products, mainly ultra-low sulphur diesel
- In the very near future Australia is expected to have only four of an original eight oil refineries with a combined capacity of only 490,000 barrels per day versus demand of more than 1.25 million barrels per day
WHAT IT WILL BRING:
- 1000 construction jobs
- 300 ongoing positions
- 100Ml capacity
- 43,000 barrels per day
- 120ha site near Targinie