The development of a diesel import terminal at Port Bonython will provide a significant boost to the state's economy and create up to 150 local jobs.
It was announced today that Tokyo-based Mitsubishi Corporation would establish a diesel import terminal at Port Bonython.
The $110 million investment in South Australia will be the corporation's first entry into the Australian fuels market.
Mitsubishi will share the existing jetty facility at Port Bonython currently used by Santos.
"This facility, which is expected to be operational by mid 2016, will boost fuel security in South Australia, providing a competitive and reliable supply and helping underpin future economic growth."Treasurer Tom Koutsantonis
The announcement has been supported by the state government, and treasurer Tom Koutantonis said Mitsubishi Corporation's investment was a vote of confidence in South Australia.
“We are seeing record export levels in South Australia and anticipated growth in our mineral resources and energy, transport and agriculture sectors will mean additional demands for fuel,” Mr Koutsantonis said.
“This facility, which is expected to be operational by mid 2016, will boost fuel security in South Australia, providing a competitive and reliable supply and helping underpin future economic growth.
“A secure diesel supply is vital and this facility will be part of our arsenal to help grow the state’s economy.”
Transport and Infrastructure Minister Stephen Mullighan said the new terminal would be an integral piece of infrastructure to both enhance fuel security for the state and launch Mitsubishi Corporation’s diesel supply, sales and distribution business.
“The establishment of the facility will mean the creation of up to 150 local jobs through the construction of the site and 10 as part of ongoing operations,” Mr Mullighan said.
Mitsubishi Corporation general manager, petroleum business division Jack Watanabe said the move supported confidence in South Australia and partnerships between Japan and Australia.
“This investment and the facility signals our strong commitment to growing our business in the Australian fuels market,” Mr Watanabe said.
The project will use the existing deepwater jetty near Whyalla.
The construction of the diesel importation, storage and distribution operation will significantly increase the diesel storage capacity within South Australia and the availability of diesel in northern regions of the state, supporting the local mining and resources industries.
Mitsubishi Corporation, through its wholly owned subsidiary Petro Diamond Australia, will partner with Australian company Coogee Chemicals to operate the facility.
As part of the previously-approved development application in the hydro-carbon precinct, a detailed assessment was undertaken ensuring the project is environmentally sound and adheres to strict guidelines.
Final designs of the facility, which will include storage capacity, will be approved by the Department of Planning, Transport and Infrastructure.