The expansion of the alkylation unit and the upgrade of the crude-processing unit have been deferred, Caltex said on Friday.

The projects are part of a $300 million program to improve the performance of Caltex’s two refineries – Kurnell and Lytton in Brisbane. The projects include increasing diesel production at both units and expanding tank storage.

This follows BHP Billiton’s announcement earlier this month that it had put the expansion of its Worsley alumina refinery in Western Australia on hold while it waited for the heat to go out of the resources and construction boom.

BHPB said the project could be delayed by as much as two years because of cost blowouts.

Another major resources project, Gorgon, will also be up to two years behind schedule, although in this case Gorgon’s problems are as much to do with environmental approvals as with construction costs and the skills shortage.