Australia Considers First New Oil Refinery in 60 Years Amid Middle East War

Australia mulls building its first new oil refinery in over 60 years to enhance energy security amid Middle East conflict-driven supply strains.

Editorial Desk

July 28, 2026 One Min Read

POLICY WIRE — Canberra, Australia — Australia is contemplating the construction of its first new oil refinery in more than six decades, Prime Minister Anthony Albanese announced on Tuesday. The move comes as the ongoing war in the Middle East tightens overseas fuel supplies, highlighting the need for enhanced energy security.

Albanese stated that the proposed refinery aims to bolster Australia’s resilience and sovereign capability regarding fuel, potentially insulating the nation from future supply disruptions. “This project is crucial for our energy security — and national resilience,” he said.

If deemed feasible, the large-scale oil refinery would mark a significant shift in Australia’s energy infrastructure, designed to reduce dependency on foreign oil and mitigate the impact of global supply shocks.

The announcement follows growing concerns over the reliability of international fuel supplies amid escalating geopolitical tensions. The Middle East conflict has already led to volatility in global oil markets, prompting nations worldwide to reassess their energy strategies.

Albanese’s proposal underscores Australia’s commitment to securing its energy future in an increasingly unpredictable global environment. Further details regarding the refinery’s location, timeline, and cost are expected to be released following a comprehensive feasibility study.

Reporting by Policy-Wire (PW)

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