Fuel continues to be produced at a "pretty decent rate" at a Victorian oil refinery damaged in a blaze overnight, the facility's executive general manager says.
Firefighters spent 13 hours fighting the blaze at the Viva Oil Refinery in the Geelong suburb of Corio after equipment failure sparked the fire around 11pm.
Despite damage to the MOGAS unit of the refinery, Viva Energy oil refinery manager Bill Patterson said petrol, diesel and jet fuel continue to be produced, albeit at a "lower rate".
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"As a result of last night's incident we have taken some steps to make sure the rest of the refinery is running as safely as possible," Patterson said.
"Typically that doesn't mean stopping everything, it just means bringing the rates down.
"It's fair to say that we're still making petrol, diesel and jet fuel at a pretty decent rate.
"It hasn't been a very large impact at this stage, but obviously as we work through the full implications of the events of last night we'll keep looking at that."
Petrol, diesel and jet fuel are made in units "quite separate" to the unit where the fire occurred, Patterson said.
"There's a specific couple of units that were impacted in the events of last night, they relate to a part of the refinery that combines LPG to make gasoline-type molecules.
"That's what's been damaged by the events of last night, but obviously we still have to look into the full extent of the damage as we get better access to the scene."
Aviation gasoline the 'primary impact', energy minister says
Energy Minister Chris Bowen conceded the blaze posed a "setback" to the nation's already shaky fuel supply, but said the blaze had impacted a more niche type of fuel.
"It's not a positive development, it's not good timing, and this is a setback," he said.
"Viva has informed me the primary impact is on gasoline and aviation gasoline."
However, he clarified aviation gasoline was not the same as jet fuel, saying aviation gasoline was commonly used for small planes.
Bowen said around six million litres of aviation gasoline was used in Australia per month, and claimed the country had a 23 million litre stockpile.
He said Viva was adamant it will be able to replace any shortfalls in petrol production caused by the fire.
He said there would be "some" delay, but that he had received assurances from the company that it would not be a costly one."
"They will be able to replace the impacted petrol production with imports," he said.
Firefighters' efforts praised
Fire Rescue Victoria's deputy commissioner has called efforts to extinguish the blaze at the Viva Energy oil refinery in Corio overnight as "pretty incredible".
"The fire was brought under control and extinguished within 13 hours, which is pretty incredible given the size of this refinery," Fire Rescue Victoria (FRV) deputy commissioner Michelle Cowling said.
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"This has been an amazing effort by all crews involved."
FRV Incident Controller Anthony Pearce said Viva Refinery crews, who initially responded to the blaze, battled active explosions at the refinery last night.
"The crews from Viva firefighters in particular have done an amazing job.
"In the early stages of the fire it was very, very dangerous and there were explosions occurring.
"The work they've done to be able to isolate the fuel supply to the area affected has been amazing.
"That early intervention is what's made this fire be brought under control so quickly."
Earlier, the FRV said it appeared the fire had been caused by an equipment failure, and would be thoroughly investigated by FRV, WorkSafe, Victoria Police and Viva Refinery.
"Firefighters remain on scene and we continue to monitor the situation and work with Viva and partner agencies to ensure the safe operation of the site," an FRV spokesperson said
WorkSafe Chief Health and Safety Officer Sam Jenkin said a comprehensive investigation into the cause of the fire would be begin once the site was safe.
"Right now, as Victoria's health and safety and dangerous goods regulator, WorkSafe's priority is supporting lead agencies to ensure that all work on the site is carried out safely and without risk to workers or the public," Jenkin said.
"We understand there is significant community concern about this incident and will continue to engage with our stakeholders during the ongoing response and recovery."
The refinery is a licensed major hazard facility, which means it is subject to stringent legal obligations and regular Worksafe inspections.
WorkSafe's comprehensive investigations can take more than 12 months to complete, the workplace hazard watchdog said.
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Calls for fuel strategy overhaul
The Geelong plant is one of only two operating oil refineries in Australia, prompting calls to diversify the nation's fuel strategies.
"We are now seeing in real time how vulnerable Australia is to international as well as domestic interruptions to fuel supply," Professor Mark Brown from the University of the Sunshine Coast said.
"A biofuels industry could help Australia could buffer us from these vulnerabilities in future."
Brown said Australia currently had the capacity to produce between 400,000 and 500,000 litres a year of biofuel, but production was only at 30 per cent capacity.
"With no change in infrastructure or fuel rules this capacity could be scaled up quite quickly and be added to fuel supply as blend," he said.
"While large-scale biofuel production can't be switched on overnight, biofuels can provide Australia with future sovereign fuel capability and reduce potential exposure to global shocks, particularly for aviation, shipping and heavy industry, where alternatives like batteries are decades away."
'Explosions' before fire took hold
Fifty firefighters battled the blaze at the Viva oil refinery in Geelong, which was reported at 11.05pm yesterday following reports of explosions and flames.
The incident happened as the nation faces a fuel crisis, and the federal government is warning the fire will have an impact on national supplies.
Fire Rescue Victoria Assistant Chief Fire Officer Michael McGuinness said the fire began in the MOGAS section of the complex, where motor gasoline was produced.
"There's been some sort of leak, there's hydrocarbons, flammable liquids which very readily caught fire," he said.
"It was burning in an area of approximately 30 metres by 30 metres. There have been several small explosions."
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FRV believes the fire was unintentionally lit, and started from a gas leak that triggered smaller fires and several explosions.
"We just have not been able to conduct any investigations at this stage … The workers indicated that a leak was detected, then very quickly that increased in size, and an explosion occurred, and a rapid fire occurred," McGuinness said.
FRV specialist hazardous materials teams conducted atmospheric testing, but did not identify any contaminants in the atmosphere or water run-off from firefighting operations.
The refinery in the industrial suburb of Corio produces 120,000 barrels every day, and supplies about 50 per cent of Victoria's oil and 10 per cent of Australia's supplies.
An earlier watch and act message for areas south of the Corio Refinery has been lifted.
Six domestic oil refineries have closed in the last 20 years, leaving only the Ampol Lytton refinery in Brisbane and Viva Energy's Geelong facility operational and meaning Australia imports 90 per cent of its liquid fuel needs.
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The Geelong facility is the country's sole producer of aviation fuel.
Australian Workers Union official Ross Kenna told 9News there was likely to be "diminished" output at the refinery due to the fire.
He says the blaze started at the MOGAS unit overnight, a critical part of the plant where motor fuel is refined.
"I imagine there will be a capacity loss."
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