Port Bonython Fuels

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Port Bonython Fuels is a fuel importation and diesel distribution hub at Port Bonython on the Point Lowly peninsula in South Australia's upper Spencer Gulf region. The development was designed to supply the State's expanding oil, gas and mineral resources sectors' operations in the north and west of the state. It allows South Australia to import fuel from ships carrying cargoes in excess of 100,000 tonnes- [1] approximately four times the size of vessels currently importing diesel via Port Adelaide. [2] [ unreliable source? ] The project is owned by Petro Diamond Australia, a wholly owned subsidiary of Mitsubishi Corporation. [3] The first stage of the project was officially opened in May 2016. [4] [5]

Contents

Petroleum importation in South Australia

Prior to establishment of Port Bonython Fuels, South Australia imported hydrocarbons at ports with significant depth constraints. The two berths receiving hydrocarbons were at Kirton Point, Port Lincoln (with a draught of 9.9 metres) and at Inner harbor, Port Adelaide (with a draught of 10.7 metres). [6] With a depth of approximately 20 metres, [7] Port Bonython will be able to receive cargoes from much larger tankers than at the state's shallower ports.

Ownership

The terminal is owned by IOR Terminals Pty Ltd, an Australian company based in Adelaide, South Australia. The facility is operated by Coogee Chemicals. [8] The pre-existing 2.4 kilometre long jetty at Port Bonython is used by Port Bonython Fuels to import hydrocarbons. The jetty was constructed by Santos Ltd in 1982, and was sold to the Government of South Australia in 1983 for $48.2 million. As of 2015, the jetty remains Government infrastructure but has been used exclusively by Santos for the export of hydrocarbon products. [9]

Operations

Fuel will be imported to a land-based tank farm then distributed via tankers up to A-Triple in size. Vessels will berth at the existing wharf at Port Bonython, which is capable of accommodating vessels of 120,000 DWT. Two new loading arms were added to the jetty to support the facility's needs, along with 5.2 km of pipeline which connects the berth with the land-based facility. Three tanks have been constructed, each with a capacity of 27 million litres. [5] The tank farm at Stage 1 has an aggregate storage capacity of 81 million litres. The facility was designed to offer a 24-hour, 7-day-per-week service. [8]

History

Port Bonython Fuels was originally conceived by Stuart Petroleum and the Scott Group of Companies in August 2007, as a $45 million joint venture project. [10] It was disclosed as part of the Government of South Australia's plan to support the growth of the mining sector in 2008. [11] A Development Application was lodged with the Government of South Australia by Stuart Petroleum in May 2009. [2] The Port Bonython Fuels project received development approval in January 2010. [12] Senex Energy acquired Stuart Petroleum, then sold Port Bonython Fuels to Mitsubishi Corporation in 2012–13. The project was re-announced in 2014, and valued at $110 million. [13] Treasurer Tom Koutsantonis described the facility as providing a "competitive and reliable supply and helping underpin future economic growth." [14]

The proposal was met with opposition from the Alternative Port Working Party, which has campaigned for the relocation of industrial development projects away from the Point Lowly peninsula. Spokesperson Sid Wilson told the ABC in 2014:

"We still have the concern that they are degrading the natural environment - as much as they'll create 10 new jobs full-time they'll degrade the tourism and recreation appeal of that area. Really our concern is that they're developing the best piece of coastal marine land within 100 kilometres of Whyalla." [15]

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Port Bonython is the location of a deepwater port, gas fractionation plant and diesel storage facility west of Point Lowly in the Upper Spencer Gulf region of South Australia. It lies 16 km east-northeast of Whyalla, South Australia and approximately 370 km north-west of the State's capital city, Adelaide. The existing wharf is 2.4 kilometres long and is capable of berthing small Capesize ships with a maximum capacity of 110,000 tonnes. The wharf was established in 1982 and named after John Bonython, the founding chairman of Santos Limited. The structure is leased to Santos by the South Australian Government and is used for the export of hydrocarbon products. An oil spill at Port Bonython in 1992 resulted in loss of bird life and damage to mangrove habitats to the west and southwest of Port Pirie.

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Save Point Lowly is a community action group based in Whyalla, South Australia. The group was formed circa 2008 to present an alternative vision for the future of the Point Lowly area north-west of Whyalla and resist plans for heavy industrialization. The group aspired to raising the profile of the Point Lowly area, including the giant Australian cuttlefish aggregation, which the group believes is under threat from a number of industrial proposals including: a seawater desalination plant for BHP Billiton's Olympic Dam mine, a diesel distribution hub, a technical ammonium nitrate plant and an iron ore export facility. Collectively these development have been referred to by the Government of South Australia as the Port Bonython Minerals Precinct. The group's spokesperson and chairman is Andrew Melville-Smith who is a practising veterinarian and resident of Whyalla.

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References

  1. "Whyalla & Eyre Peninsula - Regional Plan August 2012" (PDF). Regional Development Australia. 2012-08-01. Archived from the original (PDF) on 2015-07-13. Retrieved 2015-07-13.
  2. 1 2 "STU - Port Bonython Fuels Development Application Lodged - Mr Tino Guglielmo, Managing Director". BRR. 2009-05-26. Retrieved 2015-07-12.
  3. BRUCE, KAYLEIGH. "Fuel terminal on track" . Retrieved 2015-06-30.
  4. "Mitsubishi Corporation to launch diesel business in Australia | Australian Manufacturing". www.australianmanufacturing.com.au. Retrieved 2015-07-01.
  5. 1 2 Mayfield, Louis (2016-05-10). "Supplying the industry 'lifeblood'". Whyalla News. Retrieved 2016-05-11.
  6. Petroleum import infrastructure in Australia - Main report (PDF). Melbourne, Australia: ACIL Tasman. 2009. p. 84.
  7. "Port Bonython Bulk Commodities Export Facility Overview of Draft Environmental Impact Statement" (PDF). Archived from the original (PDF) on 2015-09-24.
  8. 1 2 "www.gmusg.com/WSCMConfig/Presentation/Item218.pdf" (PDF). www.gmusg.com. Retrieved 2015-06-30.[ dead link ]
  9. "Final Report - Port Bonython Jetty Refurbishment" (PDF). 2010-11-11.
  10. "Port Bonython green light signals diesel market shake-up". www.fullyloaded.com.au. Retrieved 2015-07-12.
  11. "Mining infrastructure growth". New Connections: 6. 2008-08-01.
  12. "Port Bonython Fuels". Port Bonython Fuels. Retrieved 2015-06-30.
  13. "$110m diesel facility for Port Bonython - InDaily | Adelaide News" . Retrieved 2015-07-13.
  14. BILNEY, KATE. "Diesel terminal for Port Bonython" . Retrieved 2015-06-30.
  15. "Environmental fears fuel Port Bonython terminal opposition". ABC News. Retrieved 2015-06-30.