Refineries, locations & stuff....

Submitted: Sunday, Nov 04, 2012 at 14:50
ThreadID: 98854 Views:4640 Replies:8 FollowUps:22
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Can anybody clear up the issue of what brands of fuel different cities have? For instance, I have heard that there is only a Shell refinery in Sydney and regardless of whether we go to a Shell, BP or Caltex servo, Shell is what we get because that is our only refinery and BP are not going to come all the way up to say, Newcastle from Melbourne to deliver, when Shell are nearer and can do it for them. They have reciprocal arrangements between the fuel compnies/refineries and half the time (maybe all the time??) we think we are buying one brand, we are actually getting another. What I'm saying is probably not exactly the case but something along these lines??
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Reply By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 15:00

Sunday, Nov 04, 2012 at 15:00
ok, (he says, talking to himself) thanks to good old wiki, I have found the locations of the refineries around the country - the question is, will we, in Sydney have no BP but Caltex and/or Shell? Or do BP make the effort to come down from Brissie?

locations below:








Oceania

[edit] Australia

[edit] New South Wales
Kurnell Refinery, (Caltex), 124,500 bbl/d (19,790 m3/d),[17] Botany Bay
Clyde Refinery, (Royal Dutch Shell), 100,000 bbl/d (16,000 m3/d), Clyde

[edit] Victoria
Geelong Refinery, (Royal Dutch Shell), 130,000 bbl/d (21,000 m3/d), Geelong
Altona Refinery, (ExxonMobil), about 75,000 bbl/d (11,900 m3/d), Altona North (refinery reduced from 2 trains to 1 train between 2000–2004)

[edit] Queensland
Bulwer Island Refinery, (BP), 90,000 bbl/d (14,000 m3/d), Bulwer Island
Lytton Refinery, (Caltex), 104,000 bbl/d (16,500 m3/d), Lytton

[edit] South Australia
Port Stanvac Refinery, (ExxonMobil), 100,000 bbl/d (16,000 m3/d), Lonsdale (mothballed since 2003 - 239 ha site to be cleaned up and redeveloped for housing)

[edit] Western Australia
Kwinana Refinery, (BP), 138,000 bbl/d (21,900 m3/d), Kwinana
AnswerID: 497907

Follow Up By: Member - Wamuranman - Sunday, Nov 04, 2012 at 19:40

Sunday, Nov 04, 2012 at 19:40



I think one of the refineries in Sydney closed recently but this picture pretty much tells the story.

Cheers


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Reply By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 16:14

Sunday, Nov 04, 2012 at 16:14
Approximately 25% of petrol sold in Australia is imported, mostly from Singapore. This amount is progressively increasing. The balance is refined in Australia.

The output from refineries is piped to bulk terminals from which it is wholesaled to petrol marketers and sold from their branded service stations. These wholesaling contracts regularly change. This arrangement has existed since I entered the industry in 1960 but it was not well publicised. It caused me to smile when someone told me that their car ran better on one brand more than another.


From Steve's response above you can see that W.A. has only one refinery and SA, NT
& Tas. have no operational refineries. So there are no alternative sources in those regions other than by importation.

So you have no way of knowing the refining source of the petrol you buy at the pump. It can vary from time to time.


The following extract from The Institute of Petroleum provides further detail:

********************************************************

"BULK FUEL SALES: 'INTO' AND 'OUT' OF TERMINALS

There is significant wholesale market competition in Australia.

There is competition for bulk fuel supply both 'into terminal' and 'out of terminal' to wholesalers, resellers, retailers and other major fuel users.
Contracts for sales of fuel 'into' terminals, whether from domestic or international sources, are based on Import Parity Pricing (IPP).

Sales of fuel 'out' of terminals are negotiated on commercial terms mainly to contracted wholesale and retail customers, although spot purchases occur.

Contracts are typically based on IPP or TGP, while spot purchases are on the basis of the Terminal Gate Price (TGP). Terminal operators seek to recover the terminal's capital and operating costs including taxes and other charges. Discounts or premiums may apply to customers depending on the volume, contract term, and any branding or marketing support provided.

Oil companies and independents often buy petroleum products from each other in markets where they do not own refineries or where they do not directly import through hosting arrangements. This is an economic and efficient way to service their customers in these markets. Such transactions are based on IPP and according to the ACCC were on average "only 0.4 cents per litre lower than the IPP in 2009–10".

The underlying pricing approaches in bulk fuel contracts and transactions are generally the same for all wholesale fuel customers."

****************************************************

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Allan

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Follow Up By: Member - John (Vic) - Sunday, Nov 04, 2012 at 19:32

Sunday, Nov 04, 2012 at 19:32
Allan has this right.
I worked at the Mobil Altona Refinery for 4 years as a maintenance fitter, we never had any form of split allocation of fuels for different buyers in my time their, it all went Holden Dock and was shipped interstate and overseas to places like the Pacific Islands and the Yarraville or Newport bulk terminal.
If you stand out front of the Yarraville terminal and watch the tankers come and go they have everyones brand name on the side, BP, Shell etc.
All fuel must meet Australian fuel standards regardless of the source.

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Reply By: Member - Chris & Debi (QLD) - Sunday, Nov 04, 2012 at 16:27

Sunday, Nov 04, 2012 at 16:27
I was always under the impression that yes they do share resources but that does not mean all fuel is the same as each brand will add their own additives package to bring the fuel upto their own product requirements
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Follow Up By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 16:33

Sunday, Nov 04, 2012 at 16:33
that makes sense to me as some of the "cheapo" outlets are pretty universally regarded as inferior, or is this an urban myth? I've heard professional drivers on here saying they do better with BP, for instance, both in kph and in the cleanliness of their fuel. Dunno.
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Follow Up By: Member - Chris & Debi (QLD) - Sunday, Nov 04, 2012 at 16:51

Sunday, Nov 04, 2012 at 16:51
I don't think its an urban myth Steve, fuel from some western Qld outlets give noticably lower power and increased fuel consumption from fuel supplied from local refinery.
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Follow Up By: olcoolone - Sunday, Nov 04, 2012 at 17:02

Sunday, Nov 04, 2012 at 17:02
I would not say the "cheapo" outlets are inferior..... most will by from mainstream vendors and may also get it trucked in from interstate in unmarked tankers.

As for one fuel brand is better than another, I can tell the difference with in performance and economy NOT!

Going to a higher quality fuel there may be a difference but from brand to brand I doubt...... fuel companies would love you to think different.

All fuel in Australia has to meet Australian standards.

Bit like buying shampoo and conditioner, soap and toothpaste..... they all say theirs is the best...... a lot has to do with mind games.

You could have two pumps pumping the same stuff... one priced at $1.50 per Lt and the other at $1.95.... if you put some technical information about the fuel on the pump that sells fuel for $1.95 more people would by it and think there is a noticeable improvement in performance and economy.

Remember Teflon..... one oil company started advertising they have Teflon in there oils..... people think of Teflon as being slippery so that oil must be better..... how much more slippery does oil have to be......

All fuel companies add their own stuff to a base product depending on climate and application.
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Follow Up By: Member - Chris & Debi (QLD) - Sunday, Nov 04, 2012 at 17:15

Sunday, Nov 04, 2012 at 17:15
If you filled up from some western qld fuel outlets you will notice a difference especially in k's per tank. These outlets do not get their fuel from main stream outles or refineries but small onsite refineries located at oil producing well site. How far this fuel is distibuted I have not idea.
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Follow Up By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 17:32

Sunday, Nov 04, 2012 at 17:32
regarding fuel having to meet Australian standards, I had heard that was the problem with some of the crap fuel we get, as opposed to the more highly refine product in Europe.
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Follow Up By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 17:49

Sunday, Nov 04, 2012 at 17:49
Yes, I remember the Teflon advertising. And do you remember back in the 1950's (no, of course you wouldn't) when Ampol were marketing petrol "containing boron". At the time the USAF were experimenting with a boron derivative additive to jet fuel so Ampol tried to score credence on the back of it. It was before my entry to the refining industry so I did not have inside knowledge but Ampol soon dropped that marketing. I would bet that the boron added was so insignificant as to have absolutely no effect anyway. And there was other stuff that I have forgotten.

Chris & Debi, Fuels are adjusted in composition on a seasonal basis at the point of refining but I have seen no facility to add further substances at any of the bulk terminals that I have been in. Anyway, the so-called "additives" are not just chucked in at the end of product manufacture, they are introduced into the product at an appropriate point in the refining process. It really is more complex than most would think.

But there would be no convincing those who believe in fuel characteristic differences, even so-called "professional drivers". Their evaluations have no technical basis and environmental factors are not taken into account. However they display an impressive wisdom!

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Follow Up By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 18:11

Sunday, Nov 04, 2012 at 18:11
so, if Metro or United, for instance, source their fuel from the Shell refinery in Sydney, are we getting the same product that we get from a BP servo? If not, are "additives" done at the refinery according to the outlet's (BP, Metro etc) specifications?
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Follow Up By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 18:54

Sunday, Nov 04, 2012 at 18:54
Well Steve, I'll cover myself by declaring that I am now retired and haven't been on a refinery for a few years, but I never was aware that production was brewing a batch for a specific wholesale customer. When you've got the process running sweetly it would be too much trouble to muck about brewing special mixes and sending them to allocated storage. It was all the same product at all times.

Bear in mind that in most cases the wholesale buyer has little or no source option and is aiming to buy his fuel at the lowest possible price so he accepts the standard product on offer.

There is no motivation for resellers to offer boutique blends of product. Customers will mostly purchase from the most convenient servos but if they have strong convictions regarding brand differences they will not be swayed by product advertising anyway. When did you last see an advert for fuel?

There are a lot of urban myths about fuels from people who have no involvement in the industry.


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Follow Up By: Member - Chris & Debi (QLD) - Sunday, Nov 04, 2012 at 19:09

Sunday, Nov 04, 2012 at 19:09
Allan,
Different brands of diesel have a different colour to others, when would this occur, again I have no idea but understood additives were added at the time the tankers were filled at the refinery.

Are you having a go at me about the urban myth thing :) I mentioned that as I know fuel in some outback outlets are not supplied by the large refineries and only small local ones that produce maybe 1200 bbl a day. One being at Eromanga, I was actually the mechanic on the rig that drilled the wells the crude oil comes from. The crude was so light it was used in the donkey pumps and trucks out that way without any refining only filtering. The company also got huge fines from the government as they were using thier own fuel in truck used on public roads and so were not paying fuel tax.
Chris
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Follow Up By: Road Warrior - Sunday, Nov 04, 2012 at 19:18

Sunday, Nov 04, 2012 at 19:18
Just to reinforce what Allan B said, there is a lot of old wives tales out there about petrol and where it comes from. I spent 7 1/2 years in the petroleum industry in operations and retail for both BP and an independent retailer...that independent retailer went through a phase of importing fuel but none of it was from Singapore, it was either from the UAE or Brunei. The quality of the product coming from refineries in the middle east was quite high. After a while the novelty wore off and they just started obtaining product direct from the BP refinery in Kwinana. The only thing that would get added is the dye to differentiate the product - there was nothing else added.
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Follow Up By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 19:24

Sunday, Nov 04, 2012 at 19:24
don't get me wrong Allan - I know bugger all about this stuff and am just asking from my own perspective (ie: ignorance) ....but, are you saying you'd just as happily fill up fro United/Metro etc as from Shell, BP etc? Just asking, because I don't know.

chris/Debi: his urban myth was a reply to my query.

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Follow Up By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 19:31

Sunday, Nov 04, 2012 at 19:31
Chris, in general, my comments to date have been related to petrol production.

Almost 50% of diesel fuel sold in Australia is imported so it is not surprising that there may be some differences in appearance and maybe also in performance.

I was aware of the diesel production by IOR at Eromanga but know little about it other than I thought it was a special product for use within the mining industry and was not available for retail sale, but perhaps I am wrong.

No, not having a go at you re "urban myth". I was responding to Steve's question.

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Follow Up By: Member - Chris & Debi (QLD) - Sunday, Nov 04, 2012 at 19:38

Sunday, Nov 04, 2012 at 19:38
Allan, I do not know how many outlets IOR's fuel is sold through but know they do supply fuel to both the servo's in Birdsville with the supply tanker normally topping up the tanks at one servo before going around to the other.
Chris
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Follow Up By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 19:40

Sunday, Nov 04, 2012 at 19:40
Yes Steve, I'd fill up from wherever was convenient, although I may avoid some servos through concern for their underground tank quality. Even then, I have had no direct problem..... just being cautious.

And of course, when Out West, I have no choice in supply source. It simply has to be the next roadhouse regardless of brand, quality or price.

And to be frank, I've never noted any difference between them. "Oils IS Oils".

Now don't expect any response from for a while.... I have to go out for dinner. Wife's shout!

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Follow Up By: Steve M1 (NSW) - Sunday, Nov 04, 2012 at 20:25

Sunday, Nov 04, 2012 at 20:25
thanks for your patience, Al.

So, regardless of the brand, United/Metro/Liberty etc, as long as the place looks pretty well maintained, and assuming their tanks would be similar, the fuel (diesel, in my case) should be perfectly ok despite some people who wouldn't touch these cheapo places with a bargepole?

I'd much rather support a smaller independent but there is an appalling lack of info around about what you are buying and the Coles/Woolies thing just goes against many people's sense of fair play and we are co-erced into buying from the big names. Not trying to put you on the spot mate, just trying to establish if there is decent quality fuel outside the Shell/BP/Mobil/Caltex quadrangle.

cheers
Steve



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Follow Up By: Allan B (Member, SunCoast) - Sunday, Nov 04, 2012 at 23:25

Sunday, Nov 04, 2012 at 23:25
Back again Steve after prawns & pasta, yum.

Well considering that the supply sources are as you have named plus imports I can't see how inferior petroleum can be retailed by anyone, regardless of name or ownership.

There have been instances however of motorists encountering water in their diesel purchases which can be really bad news especially for common-rail vehicles. I have not had such problems but for a time carried a special filtering funnel to guard against this. However it was a pain to use as it slowed the filling rate and was a nuisance to carry, so I now live dangerously again and rely on my vehicle's installed filters.

Perhaps one day I may get my comeuppance with a pair of tanks full of dodgy diesel. Then those people with unused bargepoles will crow "I told you so" and I will be a little wiser. But I hope not.

I know what you mean about buying from the small independent. We have a nearby Woolies outlet but I always pay a little more from my even nearerby Matilda servo because I like the young couple running it. They know me by name, the Woolies one wouldn't even know me from Osama BinLaden! Life does not come down to counting the last cent, at least mine doesn't anyway. But when 'on the track' I do not have the luxury of being so selective.

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Allan

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Follow Up By: Member - Beatit (QLD) - Wednesday, Nov 07, 2012 at 20:14

Wednesday, Nov 07, 2012 at 20:14
G'day Allan,

I know it wasn't my post but would like to thank you anyway for the information. I am sure that anyone that has read this thread would feel a whole lot better about their fuel buying choices as a consequence. By the way I was also impressed about the length of time working in the same place, now that is getting a whole lot rarer these days.

Kind regards

Theo
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Follow Up By: Allan B (Member, SunCoast) - Wednesday, Nov 07, 2012 at 20:57

Wednesday, Nov 07, 2012 at 20:57
Thanks for your comments Theo. My comments may not have been fully convincing if it not for the supportive expressions from John (Vic) and Road Warrior, and I thank them. It can sometimes be difficult substantiating one's qualifications and experience.

Not sure about "working in the same place". The fact is that I have had a number of employers over the years and in various places, but I have worked in the petroleum, petrochemical and natural gas industries for most of my life from the mid 1960's. I am actually a Process Control Engineer with electrical qualifications, but was closely involved in the production processes.

This has been a well developed and successful thread and very refreshing.

Kind regards,
Cheers
Allan

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Reply By: Member - bbuzz (NSW) - Sunday, Nov 04, 2012 at 20:44

Sunday, Nov 04, 2012 at 20:44
What about Esso? They used to put a Tiger in your tank!

How do they measure the potency of diesel? I have read that BP has the highest rating (not sure of the rating name).
You cannot add that to the tanker.

bill
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Follow Up By: Member - John (Vic) - Sunday, Nov 04, 2012 at 23:32

Sunday, Nov 04, 2012 at 23:32
Esso's Australian operations were taken over by Mobil about 20 years ago.

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Reply By: Dust-Devil - Monday, Nov 05, 2012 at 02:53

Monday, Nov 05, 2012 at 02:53
Steve,

I live in Melbourne and have a number of diesel vehicles.

For many years I went out of my way to use BP (No BP refinery in Vic) as I was of the opinion that I had the best result/s all round from BP. Little dearer, but good.

A couple of years ago I was filling up late one night at the BP on Warrigal Road, Chadstone, when a 'no name' tanker pulled in at the back of me and the driver proceeded to go about his delivery procedures.

After paying I had a conversation with him re how much he was carrying, what type of fuel etc etc. He was a very 'chatty' dude and informed that the Tanker was loaded with multple fuels, (Diesel & petrol variations) in seperate compartments in the overall vehicle. I can't remember how much of ea he was carrying , but it was a 'chit load'.

He further volunteered that he was only dropping off what the Service Station had ordered and was going elesewhere that night to make other deliveries. I queried whether these were all BP servero's and he said no, gping to Mobile and independants.

I thought, what a pain having to go around to the different fuel brand pickup points to load the tanker for each Service Station. He just laughed and said it all comes out of the one place - Mobile Altona.

So there you go.

I now fully accept as stated above that the fuel is all delivered from the refinery at the specified Australian Standard. Whether or not the Australian Standard is acceptable or not is a totally different subject and debate.

It's what happens after the refinery delivery to Fuel depots and/or Service Stations that may be a cause for concern, re the subject fuel being contaminated by compromised storage facilities, and/or added contaminants such as the historic Tolulene fiasco some years ago.

So it's Coles 'shopper dockets' now when Shell Servo's available, then BP or Mobile and then whatever happens to be open.

Regards

DD
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Follow Up By: Member - John (Vic) - Monday, Nov 05, 2012 at 19:59

Monday, Nov 05, 2012 at 19:59
I tend to try and fill up at the bigger servos that tend to service the semi trailers as they will hopefully have the freshest fuel.
Simply a matter of stock turnover in my book.

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Reply By: Member - Peter H1 (NSW) - Monday, Nov 05, 2012 at 19:27

Monday, Nov 05, 2012 at 19:27
Just for info.
Shell refinery at Clyde [Sydney] is now closed.
Caltex refinery at Kurnell [Sydney] closes in 2014.
All fuel will be imported to NSW from ?????

PeterH
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Reply By: pop2jocem - Tuesday, Nov 06, 2012 at 10:40

Tuesday, Nov 06, 2012 at 10:40
As most of you know Barrow Island off the NW coast of WA and the surrounding sea has huge reserves of natural gas and light crude oil. Back in the late '60s and 70's I did a fair bit of maintenance work for WAPET (now Chevron owned). The crude that was pulled from the ground was filtered for rocks and moisture and used to run diesel powered plant and vehicles on the island. I thought that would make this crude quite valuable compared to the stuff that required a lot more refining. "Not so" I was told. Apparently basically all you got from this stock was diesel when with the "heavier" crude you got diesel, petrol, lube oil bases and a suite of other minor product. With the current prices this may have changed. I also know that a lot, if not all the fuels used in the mining industry in the NW comes direct from places like Singapore and is shipped to the local ports for distribution

Cheers
Pop
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Reply By: Steve M1 (NSW) - Tuesday, Nov 06, 2012 at 18:10

Tuesday, Nov 06, 2012 at 18:10
I admit I've reluctantly fallen for the Coles/Shell deal in the past because the Mrs shops there but as long as the independent is competitive, I'd much rather support them. I took notice of people saying 7eleven, Metro, United etc were a bit dodgy and have wrongly, it seems, avoided them. This is good news as far as I am concerned because it must be better for competition and the more, the merrier.
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