Caltex Managing Director and CEO Julian Segal has announced that the company has agreed on the key terms of a plan to boost the supply and reliability of fuel to South Australia and support the state’s resources sector as it continues to grow over the next decade.
According to Mr Segal, the proposed 25-year deal with Terminals Pty Ltd would almost double the state’s fuel storage capacity. He said that this was the largest and latest in a series of commitments that Caltex has made to its supply chain.
“This is a demonstration of our commitment to ensuring greater fuel supply reliability for Adelaide and supply continuity for Caltex’s growing list of commercial customers across the state,” said Mr Segal.
“This project is part of Caltex’s overall commitment to develop infrastructure and capability to meet Australia’s growing transport, agricultural and mining fuel needs.”
The plan will see Caltex become a foundation customer of the new fuel storage terminal to be built at Adelaide’s Outer Harbor. Currently, Terminals Pty Ltd is awaiting formal approval of a Development Application to begin stage one of the terminal. Upon completion, the terminal will hold unleaded grades 91, 95 and 98 as well as diesel, biodiesel and ethanol.
Subject to regulatory approvals, construction of the facility is due to commence later in the year, with the $80 million first stage set to open in 2013. Initially, this will provide 85 million litres of new storage capacity for South Australian fuel supply and could eventually expand to 135 million litres.
Caltex National Manager Distribution, Mike Raleigh, commented, “Caltex’s current fuel capacity in Adelaide is limited by available tank capacity and by congestion at the existing Inner Harbour berth due to occupancy levels rapidly approaching their upper limits.
“These capacity constraints have been a major factor in a number of fuel shortages affecting Adelaide and the state of South Australia over the past few years.
“Moving to a new terminal, which will be serviced by a new Outer Harbor berth, will give South Australians much greater fuel supply certainty and also improve safety.”
.jpg){kind=small}
.png){kind=small}
