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Fuel supply capability to be boosted in WA


Caltex Australia has announced plans to proceed with a major expansion of its fuel terminal at Port Hedland in Western Australia.
 
The new facility will provide two large, 20 million-litre diesel tanks and a road tanker loading facility. There is also provision for further development of petrol storage if required.
 
Caltex has awarded the construction contract to Transfield Services and construction is expected to begin in September this year, with the terminal due to commence operations in late 2011.
 
Caltex’s national manager distribution Mike Raleigh said the project was part of the company’s overall infrastructure improvement program and ongoing commitment to the Australian market.
 
 “Fuel is typically the second biggest cost that the resource industry faces. Caltex currently has a small presence in supplying diesel to the north west of Australia, however, meeting the needs of existing and potential new customers will require additional storage capacity to ensure reliable supply.
 
“This project will ensure secure, reliable and more cost-efficient supply to our customers for many years to come,” Mr Raleigh said.
 
Caltex is looking at opportunities to expand its supply chain capability throughout Australia under its infrastructure improvement program.
 
Recent projects completed include the commissioning of a second diesel hydro-treating unit at the Lytton refinery and a 27 million-litre diesel tank at Mackay in Queensland. Caltex has now commenced construction of a second 27 million-litre diesel tank at Mackay and a second 15 million-litre diesel tank at Gladstone to meet the expanding needs of the mining industry.
 
Caltex is also replacing two 20-year-old vessels and entering into new fixed-rate time charter agreements with Teekay Shipping for the modern bulk fuel tankers Alexander Spirit and the Hugli Spirit.

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