“The State Government's Office of Major Projects and Minister Patrick Conlon have agreed to support the Development Application as a Section 49 Crown Development and Public Infrastructure project,” Guglielmo said.
“The project is of major significance to the state. Every year since the closure of the Port Stanvac refinery, farms in South Australia go diesel dry in seeding and harvest. This can only get worse with congestion in metropolitan Adelaide’s fuel facility.
“It is politically essential that a new terminal is established in the state’s northern region.”
Stuart has teamed up with transport and logistics company, the Scott Group, to build the two-phase diesel refinery and fuel import and distribution terminal at Port Bonython, near Whyalla, in South Australia.
The fuel terminal will be able to import and export more than 500 million litres per annum, Stuart said.
Construction of Phase 1, a million trans-modal terminal, is scheduled to begin in mid-2008 following completion of the detailed engineering design stage, which is underway. This will include environmental and cultural heritage assessments.
The terminal is budgeted to cost $45 million with Stuart and Scott splitting the costs evenly. It is expected to be operational within 18 to 24 months.
Phase 2, the establishment of the diesel refinery, is scheduled to begin on completion of the terminal. Guglielmo said the eventual capacity of the refinery is under consideration but Stuart has previously said it will be at least 100 million litres per annum.
Guglielmo said Stuart’s Cooper oil production had a high diesel cut and the Port Bonython fuels business provided the opportunity for a strong, stable cashflow.
