WA's Oakajee site eyed for new oil refinery amid power supply concerns

The Western Australian Mid West, including Oakajee, is being considered for the country's first new oil refinery in decades, but power shortages pose a major obstacle.

A federal-state partnership has launched a $4 million pre-feasibility study to explore sites for Australia's first new oil refinery in decades, focusing on the Mid West and South West of Western Australia. Officials named Oakajee, Kwinana and Kemerton as possible locations, with Oakajee's 1,330-hectare strategic industrial area drawing particular interest. However, Joanne Fabling, chief executive of the Mid West Development Commission, warned that chronic power constraints in the region, including the lack of a 330 kV transmission line from Three Springs, could hinder investment.

Energy Minister Amber Jade Sanderson affirmed the project's logic but acknowledged the need for substantial power upgrades. Analyst Kevin Morrison cautioned that a refinery would still leave the nation dependent on imported crude, offering limited improvement to energy security. Legislative rules preventing private ownership of new grid connections add further complexity to the development timeline.