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Caltex starts building 20ML diesel tanks at Port Hedland

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Caltex Australia will expand its fuel terminal at Port Hedland in Western Australia, in a move set to add much-needed supply capability, to the resource-intensive state’s diesel market.

  

The company has awarded the construction contract to Transfield Services, to begin this month to build two 20ML diesel tanks and a road tanker loading facility. There will also be provision for further investment in petrol storage if required.
Caltex says the terminal, due to start operations in late 2011, will give the company a truly national supply chain and provide significant additional capability for servicing mining and offshore oil and gas industries in the north west of WA.
“Fuel is typically the second biggest cost the resource industry faces,” Caltex’s national distribution manager Mike Raleigh said. “So Caltex is strengthening its base business and one of the ways we can do that is to ensure we have the right infrastructure in the right places to capture key fuel growth markets.”
Caltex is looking at opportunities to expand its supply chain capability throughout Australia under its infrastructure improvement program.
Recent projects included the commissioning of a second diesel hydrotreating unit at the Lytton refinery and a 27ML diesel tank at Mackay, Queensland. A second 27ML tank will follow at Mackay and a second 15ML diesel tank at Gladstone will be built.
Supply capability has been further enhanced by replacing two 20 year old vessels and entering into new fixed rate time charter shipping agreements with Teekay Shipping for modern tankers.


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