CONSTRUCTION has commenced on fuel importing facilities and storage tanks at Port of Brisbane and Lytton Fuel Import Terminal.

The improved facilities will allow for the storage of large quantities of domestic fuel, increasing productivity at the port and fuel terminal. Completion is scheduled for June 2023.  

The project will receive funding from the Queensland government, toward $50 million dollars of work commissioned by Australian fuel distributor IOR.

Deputy premier and minister for state development Steven Miles said the facilities will deliver economic benefits and support the federal government’s long-term fuel security goal.

“Over recent periods, Queensland has been the largest user of diesel in the country, so stocking up the state’s supplies will relieve any anxiety about fuel shortages so industry can keep working,” he said.

Member for Lytton Joan Pease said the state government is providing a $15 million loan from its Building Acceleration Fund to accelerate the development. IOR will contribute the remaining funds.

“Works at the Port of Brisbane include constructing a new section of wharf deck to support a new marine unloading arm,” Ms Pease said.

“Underground and aboveground pipelines will be constructed to connect the Lytton Fuel Import Terminal to the Port of Brisbane wharf deck.”

To facilitate the project, Port of Brisbane has changed the tenure of the Fisherman’s Island crude oil berth so it can become common user infrastructure.

The Lytton terminal facility previously stored crude oil received from road tankers and sea carriers berthed at the wharf. Crude oil was then transferred to the neighbouring Ampol refinery.

Works at the fuel terminal will include repurposing an existing tank for diesel storage, installing new fuel tanks, upgrading electrical infrastructure, and constructing new diesel loading pumps and bays.

Port of Brisbane interim CEO Neil Stephens congratulated the state government on their collaboration with IOR, one of the port’s long-term customers.

“This joint investment will not only create near-term construction jobs, but it will help ensure the Port of Brisbane can continue to effectively service the fuel needs of our growing region,” he said.

“It comes on the back of IOR’s recent long-term lease extension at the Port of Brisbane. We thank them for their investment and commitment to Australia’s premier multi-cargo port.”

IOR managing director and CEO Stewart Morland said the Lytton Fuel Import Terminal will add an additional 110 million litres of diesel storage to the Queensland economy.

“It will be the largest diesel only import terminal in Queensland and one of the few in Brisbane with the capability to receive international shipments of diesel via LR2 vessel,” he said.

“IOR proudly fuels transport, agriculture, resources, and several other industries essential to the success of our economy and the livelihoods of all Queenslanders.”

Mr Morland said the terminal will provide fuel security to these industries and alleviate congestion at terminal sites as demand grows.

“The terminal will open access to third parties and in doing so will help relieve congestion, reduce the time to load, accelerate productivity, and increase competition in the Queensland fuel market,” he said.

The project is expected to support more than 260 construction jobs and eight operational jobs.