Interview with Karl Stefanovic, Today
HOST, KARL STEFANOVIC: Energy Minister Chris Bowen joins us now live, from Sydney. Chris, good morning to you. Look, how will the fire affect production and supply?
MINISTER FOR CLIMATE CHANGE AND ENERGY, CHRIS BOWEN: Good morning, Karl. Yeah, this fire broke out at 11 pm last night. I was communicating with the Chief Executive through the night.
He's pulled an all nighter, as you would expect and there's been no injuries, that's the good news. There will be an impact on production. At this point, production of jet fuel and diesel is continuing at the refinery at reduced levels for safety reasons, as a precaution.
At this point, the impact is mainly on petrol production, but obviously, this is very early days. We're working closely with the company and we'll get further information. The fire is not yet under control.
So, there's still some way to go. This is not a positive development, but obviously there's a long way to go in terms of working out just what the impact is. Our advice remains to people to buy as much fuel as you need, no more, no less.
We'll manage this. We are making good progress internationally and we'll work closely with Viva. We'll continue to work closely with Ampol, the other refinery, and manage supply.
Okay, let's just finish up on that though. You don't know at this point how it's going to affect supply coming out of that refinery, because it's a fairly big chunk, 10% of the national production, 50% for Victoria. They're big numbers, so when will that get back online then?
Well, the impact on the actual area that's been impacted by the fire will take some time to repair. Obviously, they've reduced as a precaution, the rate of production for diesel, jet fuel this morning - but they are still producing. That's very important.
The main impact appears to be at this point on petrol production, because that's the actual production line that’s been mainly impacted. But, yeah, we are in constant contact with them. The fire is not yet under control, Carl, so there's some way to go yet.
But, you know, the important thing to know is, one, no one has been injured. Two, production does continue, but there will be an impact from this, no doubt about it. Okay, so, let's move on.
What exactly did the PM secure in Brunei? Are we actually getting more fuel and fertiliser, or is that just spin? No, so the PM's been playing a blinder in Southeast Asia.
This face to face, personal contact is very important in this international environment. Yesterday, I represented the PM in a meeting of the prime ministers and presidents of Asia, and we all agreed to keep working together. The PM will have more to say later today, from Malaysia, about what's been done over there.
But, you know, we are important suppliers of energy to Asia, and they are important suppliers of liquid fuels to us and we need to keep working together. The undertakings that the PM has received from the Prime Minister of Singapore, the Sultan of Brunei, and the conversation he's having today with the PM of Malaysia are vital in ensuring that we can continue to supply each other.
How many more barrels are coming our way? Well, the important point to make, Carl, is that governments don't produce oil and petrol, although, of course, some of them are government owned in Southeast Asia. What we do is work together to manage the issues.
Again, the PM will have more to say... [interrupts] Chris, what? But what's new? Are we getting more fuel and fertiliser, or is it just part of the deal that was?
What's new is that the PM of Singapore, and the Sultan of Brunei have made clear, they will take every step necessary to maintain reliable supply to Australia, as this situation... [interrupts] Yeah but maintain is not new. So, this is just the deal, it's the deal, and there's nothing new. We're not getting more barrels of oil.
We not getting more fertiliser. It's just the way it was. There are no guarantees either.
Guaranteeing, well, ensuring the continued supply with respect, Karl, ensuring the continued supply of fuel that we were already getting from places like Brunei and Singapore is no small thing in this environment, no small thing. So it's a rolled gold guarantee. We've also got, Karl, the arrangements with Export Finance Australia, which I made further announcements on yesterday, in terms of working with companies to go and get those extra cargos that you're talking about.
In this environment, Karl, there's a war on and the situation is changing day by day, you know. Sometimes rays of light, and then backwards steps. What's important is that under Prime Minister Albanese, we are working with the Southeast Asian countries to maximise the chances. [interrupts] of getting what was in a deal… that's being produced in Southeast Asia.
Well, that's no... Well, Karl, you might dismiss that, but it's no small thing to guarantee and to ensure. So, it is a guarantee that...
From these countries. Hang on, you're saying it is a guarantee that you will get what was in the deal. What I'm saying is that the countries are guaranteeing to work with each other to maximise supply during this very difficult circumstance.
That's not unimportant. The states have zero faith in you securing fuel. WA and New South Wales are going their own way.
How is that a unified national approach? Well, with respect, Karl, that's just completely wrong. WA is working with their own circumstances.
We are working closely together. I welcome the efforts of WA to secure a relatively small amount of diesel, but material for their purposes. That's good.
That's states in the Commonwealth working together- So that's not unified... working on this. That's a good thing. That's a feeding frenzy of what's available on the market.
No, Karl, if I could finish the answer, mate, what they are doing is ensuring that they're not taking diesel off other states. They're getting additional supply, and it's complementary to the Commonwealth actions. It's not contradictory, complementary.
Governments taking action is something, state governments taking action is something I've always welcomed. Where a state government steps up and does something in this environment, they have certain powers. I have certain powers.
We're comparing notes on those powers and working together. Because a feeding frenzy on fuel that's available in the market, and the state's going their own way, feels and looks like COVID 2.0 to me. Well, I really would be careful about that sort of language, mate, with the greatest of respect.
This is states and Commonwealth working together, to manage a very difficult supply chain internationally. I happen to think that's a good thing. OK.
You appear to disagree. That's fair enough. I think states and Commonwealth working together is a good thing.
Alright, good to talk to you, Chris. Thanks so much. Appreciate it.
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