The Western Australian government is actively exploring the creation of a strategic fuel stockpile, specifically targeting diesel, to enhance the state's energy security and fortify its supply chains. This initiative aims to provide a dedicated reserve for West Australians, managed at the discretion of the state government during periods of supply chain disruption.
Minister Outlines Strategic Fuel Reserve Proposal
Energy Minister Amber-Jade Sanderson announced on Sunday that the proposal involves the state government purchasing and storing additional volumes of diesel. 'This would be solely for West Australians and be directed at the discretion of the state government to areas that need it most,' Sanderson stated. She emphasised that this stockpile would serve as a buffer during challenging times when supply chains face significant pressures.
Targeting Vulnerable Regions and Industries
The strategic reserve is designed to support critical sectors and remote areas heavily reliant on diesel. Priority would be given to agricultural regions at the end of supply chains, mining operations, and isolated communities that depend on diesel-powered generators for electricity. Sanderson highlighted that Western Australia consumes approximately a quarter of Australia's diesel supply, underscoring the importance of this initiative for the state's economy.
'This will help support that spot market and it will support those end of supply chain areas in the Great Southern, in the Wheatbelt and in the Goldfields, where they've had more difficulty getting that fuel since the fuel crisis started,' Sanderson explained. The government has not disclosed specific costs, but discussions are ongoing for a reserve 'in the millions of litres,' indicating a substantial investment in energy resilience.
Addressing National Fuel Security Gaps
Western Australia's proposed stockpile would complement the national fuel reserve, with the state retaining access to federal resources during crises. Sanderson noted that it is a requirement for states to receive their fair share from national reserves. However, the current fuel crisis revealed shortcomings, as some suppliers failed to maintain their national fuel stock obligations within Western Australia.
'Viva and Ampol, for example ... It's in Queensland,' Sanderson pointed out, highlighting the geographic disparities in fuel storage that leave WA vulnerable. This move aims to mitigate such risks by establishing a locally controlled reserve.
Political Support and Calls for Detail
WA Opposition Leader Basil Zempilas has expressed support for the proposal but criticised the lack of detailed planning. 'How much it would cost, whether it would be government-owned or come about through a much closer working relationship between the state government and the suppliers, remains to be seen,' Zempilas remarked.
He stressed the necessity of independent reserves to protect Western Australians and local industries from future global disruptions. 'We need our own reserves, and we need to be able to establish a way in which Western Australians and WA industry aren't compromised when we have a global event like this in the future,' Zempilas added, arguing that the state's remoteness should not disadvantage its energy security.
Broader Context: Queensland's Oil Production Revival
Western Australia's initiative coincides with Queensland's efforts to bolster domestic fuel production. The Queensland government has announced plans to produce its own oil for the first time in nearly five decades, targeting the Taroom Trough as Australia's first new oil field since the 1970s.
Premier David Crisafulli unveiled a development plan to accelerate infrastructure and streamline approvals, aiming to unlock the basin's resources amid global instability driven by Middle East conflicts. Oil is already flowing from the project, with Shell pumping around 200 barrels of high-grade crude daily, refined into diesel at iOR's Eromanga facility and supplied directly to Australia's fuel market.
'Unlocking the Taroom Trough is critical to locking in future national fuel security,' Crisafulli asserted, framing the project as a national security imperative. 'It's there, now it's up to all levels of government to get it flowing.' This parallel development underscores a growing trend among Australian states to enhance fuel autonomy and reduce reliance on international markets.
