Interview with Mark Gibson, ABC Perth

MARK GIBSON: This morning, news that the WA and Federal Governments are investigating the possibility of a new oil refinery right here in WA to strengthen the country's energy security. Members of the state and federal governments are in Karratha for the announcement this morning, including the Prime Minister, the Premier and the Federal Resources Minister, Madeleine King, is on the line from the Pilbara. Morning, Minister.

MINISTER MADELEINE KING: Good morning, Mark. And I can assure you it's nearly as cold in Karratha as it is in Perth, which is a surprise to me.

MARK GIBSON: Jess Lingard told us that from the weather Bureau a little earlier actually, that Karratha was a bit chilly this morning to welcome all the pollies in town. Where are we at? This sounds like very early stages of this discussion.

MINISTER MADELEINE KING: Yeah, very much so, but really important early stages. This feasibility study that the Federal and State WA Governments are committing to enables further research and studies to be done on, you know, the best location and whether this is indeed feasible to build a new refinery. Obviously, it's not a capacity anyone's had to build in around the country actually for a very long time. But since the closure of BP in Kwinana, which I've been very close to, my dad used to work there, one of the first workers there. We now find ourselves in this contested period with the war in the Middle East, and that seems to be spreading, unfortunately, where fuel security is imperative to Western Australia and therefore Australia's future. So, this is a sensible way to approach the idea of building a BP refinery, sorry, an oil refinery. And having Perdaman as the group looking into it is a good thing too. They've proven themselves to be manufacturers, builders of things. And we see Perdaman now nearly at the finish line for the urea project here in Karratha, which I'll be visiting for the third time today.

MARK GIBSON. So, when you talk about the BP refinery, I mean, are we chasing ourselves around in circles a bit here, closing down refineries? We're down to what two, haven't we? Queensland and Victoria, the only two remaining. And then here we are talking about needing another one.

MINISTER MADELEINE KING: Yeah, that's right. There's only two remaining and four are finally closed under the former coalition government. And one of them was BP, which was our only fuel refinery in Western Australia. So, that now is just an import terminal in Kwinana, still a very important facility. But on this west coast, on this very large western third of the whole country, we don't have that sovereign capacity of refining. And in ordinary normal times, where the world is peaceful and stable, which we haven't seen for some time, very sadly, that we would normally rely entirely on others. But that is no longer the case. We can't put our heads in the sand and pretend that we don't need a kind of sovereign capacity. But there is a bit of a pathway to go on this. And this is where, you know, good things start, with good research and good studies into the feasibility.

MARK GIBSON: Well, talk to me about the location then. Does Karratha make sense to you? If so, why?

MINISTER MADELEINE KING: Well, the north does make sense but let me be clear. We haven't decided on a location. That's what a feasibility study is about, finding the best place, the most sensible place to pursue such a venture. Because these are large projects. If anyone knows the BP site, it's a very large site. It needs tank farms, it needs refining capacity. So, putting it somewhere where it's welcome in an industrial area is really important, and making sure it's got that connectivity around the state is also important, as well as connectivity out to the Indian Ocean for transport links. So, this is what we've got to decide. Obviously, if it's in the north, it may attract support from the Northern Australia Infrastructure Facility. But I would stress that this is just a feasibility at the moment, but an important one nonetheless.

MARK GIBSON: Madeleine King, the Resources Minister on the line from Karratha this morning, where a bunch of state and federal politicians have gathered to make this announcement. So, are we in competition with other locations then, or is this just the only site for a feasibility study at the moment? What can you tell us?

MINISTER MADELEINE KING: Well, when you say – this is a feasibility study for a refinery in Western Australia.

MARK GIBSON: So, there are no other feasibility studies for other states?

MINISTER MADELEINE KING: Well, not at this point, but there is a fund that is not going to be fully expended on this particular study. So, we'll be looking at other places around the country, but I'll leave that for Minister Bowen and the good work of his team to announce. But really importantly for Western Australia, this is the first cab off the rank because we are the western third and the powerhouse of the nation and that fuel security, given our distance from our colleagues in the east, is really important and this is why we're going first in WA.

MARK GIBSON: Is there any capacity to think about reactivating Kwinana or not?

MINISTER MADELEINE KING: Look, very sadly there is not and I know this for a fact. I went to Wesfarmers WesCEF and went up to the top of one of their towers and I can see that the BP is no longer there, the refinery is no longer there, the fuel tanks are there, the fuel farm where the importation happens, but all the buildings my dad used to work in, my friends from school used to work in the ops centre, they've all been decommissioned now and, and that's not, not really a feasible option.

MARK GIBSON: Ok, Minister, I really should ask you, given we're talking about, you know, effectively it comes down to things like fuel supply, fuel security, all those sorts of things once we've got the oil. The fuel excise cut that the government brought in, it's had a couple of different phases. It's due to end this weekend, isn't it? Sunday. Discussions going on in government, is there any potential to extend it or is that it? Because with oil prices rising, fuel prices are rising still.

MINISTER MADELEINE KING: Yeah, it’s always under discussion how we can best help with the cost of living for Western Australians and indeed the whole nation. So, those discussions are ongoing where you have to be responsible with the Budget and what the implications are around changing this excise fee. But we're well aware and very, very cognisant of the pain felt at the bowser and we’ll, no doubt, and I know for a fact the Treasurer and the Prime Minister and other ministers are actively looking at this.

MARK GIBSON: We've only got a few days to go, so you haven't really ruled that out. So, it could be extended potentially -

MINISTER MADELEINE KING: This instability means you do have to be very active on a day-to-day basis to see where things are going, and it's hard to predict, there's no doubt about it. But equally, we have to be responsible with the Federal Budget because it's taxpayers’ money. So, that is what we’ll continue to do.

MARK GIBSON: All right. Madeleine King, appreciate your time. Thanks for that.

MINISTER MADELEINE KING: Oh, pleasure Mark, take it easy.

MARK GIBSON: You too. Madeleine King, the Resources Minister from the Federal Government.