British oil giant BP is halting work at its oil refinery in Brisbane, Queensland by the middle of 2015.
The 50-year-old Australian refinery which sits on a reclaimed island at the mouth of Brisbane River produces 102,000 barrels per day.
BP said yesterday the smaller scale plant was facing “huge commercial pressure” from larger refineries in the Asia Pacific.
It plans to buy fuel from other refineries for its east coast Australian retail and commercial operations.
Andy Holmes, President of BP Australasia said: “While more of our transport fuel demand will be met by imports in future, ample supplies are available to maintain Australia’s energy security.”
Around 380 staff work at the refinery but this will plunge to 25 between now and mid-2015.
Tim Wall, Managing Director of Bulwer Island refinery said: “This is a sad day for all of us at Bulwer and I know that these changes will be difficult for our employees.”