By Rhiannon Hoyle


Australia on Wednesday said it will provide grants to two oil refineries to support major infrastructure upgrades as it seeks to strengthen local production amid a global energy shortage.

Ampol Ltd.'s Lytton refinery in Queensland state and Viva Energy Group Ltd.'s Geelong refinery in Victoria will each receive a grant of up to 125 million Australian dollars (US$93.2 million), Australian Prime Minister Scott Morrison and Energy Minister Angus Taylor said in a joint statement.

The grants will be matched by both refineries for projects to upgrade their facilities, which are expected to be completed before the end of 2024, the statement said.

"Covid-19, the Russian war in Ukraine and trade restrictions have disrupted global supply chains and Australia is not immune," Mr. Morrison said.

Mr. Taylor said the grants would safeguard fuel security and help bring forward the rollout of ultra-low-sulfur fuel to 2024 from 2027.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

04-12-22 2203ET