Supply Security

Liquid Fuel Supply Security and Reliability

The Australian liquid fuel supply chain has considerable span and diversity. It includes crude and petroleum product shipments into and around Australia, refinery throughput, bulk fuel storage tanks, extensive terminal and distribution networks, over 6000 retail outlets, and substantial fuel storage facilities of major fuel users.

Australia is well serviced by this reliable and diverse supply chain which delivers a high level of security and reliability by global standards due to:

• established and effective integration into the rapidly growing Asian fuels market
• diversity of supply sources for crude oil and petroleum products – from both domestic and imported sources
• robust, flexible and reliable supply chains – both internationally and domestically and with an increasing volume and frequency of ships coming to Australia
• a domestic refining capability – which provides supply diversity and flexibility and the ability to convert domestic and imported crude oil into useable products
• imported petroleum products – providing an increase in the diversity of sources of potential supply in the event of disruptions to domestic refinery production
• current and planned import, storage and distribution infrastructure which is able to meet growth in fuel demand
• efficient supply management by industry – including rapid and comprehensive commercial strategies in place to respond to supply disruptions
• robust emergency management and planning – in the event of a national or global liquid fuel emergency.

These important market features have been confirmed in successive government and independent reviews of liquid fuel supply security over many years. In particular, see the 'Energy White Paper', 'The Parliamentary Inquiry into the Oil Refining Industry', 'Liquid Fuel Vulnerability Assessments' and 'National Energy Security Assessments' below.

The fuels industry and Australian governments recognise the potential risks and impacts of a disruption to domestic liquid fuel supplies, and AIP and its member companies actively participate in a variety of government sponsored emergency management processes such as the National Oil Supplies Emergency Committee (NOSEC). While every effort is made by industry to ensure continuing reliable supply, NOSEC and IEA processes (see below) will help ensure a coordinated response in the event of any unforseen liquid fuel or oil supply emergencies at a national or international level.

These market facts and assessments are detailed in a new AIP publication – Maintaining Supply Security and Reliability for Liquid Fuels in Australia – which provides a factual overview of the liquid fuels market and supply chain in Australia.

A copy of the publication is available.

AIP has also produced a factsheet on the ‘Facts about the Australian Transport Fuels Market’ which provides a range of factual information on specific and topical aspects of the transport market and supply chain operation in Australia.

A copy of the Factsheet is available through the following link:

Facts about the Australian Transport Fuels Market (2015)    Download

AIP has also produced a document on ‘Petroleum Ships on the Water’ which provides ‘real time’ snapshots (across March 2015) of the volume and diversity of vessels carrying petroleum products, crude oil, gas and petrochemicals.

This includes snapshots of vessels in Australian waters, the Asia-Pacific region, the Singapore trading hub and the Indian Ocean.

A copy of ‘Petroleum Ships on the Water’ is available.