Sydney, March 30, 2026, 03:09 AEDT
Santos Ltd has accelerated a portion of a 575,000-barrel Cooper Basin crude shipment for Viva Energy’s Geelong plant, while shifting a separate 150,000-barrel Varanus Island lot to Ampol just last week, according to reports from Upstream and The Australian on Sunday. The outlets noted the transactions are aimed at boosting local refining capacity as fuel supply pressures mount in Australia. 1
The issue is front and center after Canberra announced on Saturday a move to amend export-finance laws, letting the government backstop private-sector fuel buys—this comes as Middle East turmoil rattles supplies in a nation that imports around 90% of its fuel. Prime Minister Anthony Albanese outlined “new powers” aimed at “get[ting] fuel here,” and Energy Minister Chris Bowen put Australia’s reserves at 39 days for petrol and 30 days for diesel and jet fuel. 2
Santos is ramping up efforts at home, but its LNG operations have hit a snag. The company halted production at Darwin LNG on March 24, citing the need for equipment replacement and commissioning tasks tied to the BW Opal floating production vessel at Barossa. According to a spokesperson, they’re “in the final stages of commissioning” and plan to resume full output, though no specific restart date was shared. 3
Chief Executive Kevin Gallagher is casting Santos’ mission in terms of regional security. In a LinkedIn post over the weekend, he argued that Australia’s LNG sector—Santos among them—has “underpinned regional energy security for decades.” Gallagher added it will take on an even greater role as Asia-Pacific demand climbs. 4
The situation’s gotten rougher. On Sunday, Chevron flagged that its Wheatstone LNG facility in Western Australia faces weeks of repair work before it’s back to full output after Cyclone Narelle. Over at Karratha, Woodside reported production snags from the same storm. According to MST Marquee’s Saul Kavonic, the cyclone—paired with the Middle East conflict—has knocked out more than a quarter of the world’s LNG supply, a hit he says will “exacerbate gas market tightness in Asia and Europe.” 5
Australia’s challenge goes beyond crude access; the real pinch is dwindling domestic refining capacity. Bowen noted last week that both of the country’s remaining refineries are “working full pelt,” with fuel rationing not on the table for now. That puts the spotlight squarely on Geelong and Ampol’s Lytton plant—two facilities now shouldering the load to keep supplies flowing. 6
But more crude from Santos isn’t a fix-all for the market. Last week, several hundred stations ran dry on at least one grade of fuel. The competition regulator has permitted big suppliers to coordinate deliveries under emergency rules, but stressed there’s still a “real risk of harm to competition.” 7
Gas markets just got a breather. On Thursday, the Australian Energy Market Operator moved its forecast for an east-coast gas crunch back to 2030, crediting softer demand and increased battery storage. Even so, it flagged risks: if slated projects get delayed, the outlook could darken again, leaving Santos with scant room for any new missteps. 8
