NEW HEAVY INDUSTRIES MADE IN AUSTRALIA

Australian Needs to be Self-Sufficient in all Resources

In Victoria we will build the following heavy industries.

  • Oil Refinery – Cost $10 billion
  • LNG Refinery – Cost $10 billion
  • Helium Refinery – Cost $50 million
  • Fertilizer Plant – Cost $500 million
Oil Refinery

Victoria has only one Oil Refinery at Geelong, operated by Viva Energy, which processes 120,000 barrels of oil a day, approximately 50% of Victoria needs. We will build a new State-owned oil refinery, comparable in size as that of Geelong, to enable Victoria to produce 100% of the State’s needs. We will allocate $10 billion to complete this project.

Building a new, large-scale oil refinery typically costs between $5 billion and over $10 billion, depending on capacity and complexity. A standard 160,000 barrel-per-day refinery often exceeds $6 billion, while massive projects can exceed $10 billion. Smaller refineries or smaller-scale projects (condensate splitters) might range from hundreds of millions to $1 billion+.

Key Factors Influencing Cost:

  • Size: (Capacity). Economies of scale generally dictate that larger refineries (250,000+ barrels per day) offer better value, with smaller ones being uneconomical.
  • Complexity: Higher complexity refineries, designed to process heavier crude into cleaner products, require more expensive technology.
  • Location: Construction in urban areas or areas with strict regulations involves high land, labour, and environmental remediation costs.
  • Project Stage: Pre-construction costs (feasibility studies, permitting, environmental studies) can cost up to $1 billion before breaking ground.

Examples:

  • 160,000 barrels per day Refinery: Approx. $6 billion.
  • 600,000 barrels per day Facility (UAE): Approximately $3.3 billion.
  • 1.2 million barrels per day Complex (Saudi Arabia): Approx. $10 billion.
  • 30,000 barrels per day Condensate Splitter (USA): $300 million
Liquefied Natural Gas Refinery

As of late 2025, there are 10 major operating LNG liquefaction facilities in Australia, but only one in Victoria. We will build a second LNG refinery in Victoria and will allocate $10 billion to complete this project.

Large-scale Liquefied Natural Gas (LNG) refineries typically cost between $5 billion and over $20 billion to build, depending on capacity and location. Mid-sized facilities (5 MTPA) often range from $5–10 billion, while smaller plants cost significantly less. Costs are driven by engineering, equipment, and complex infrastructure.

Key Cost Factors & Examples

  • Capacity & Scope: A large 8 million tons per year (MTPA) plant can cost over $1.5–2 billion, with costs scaling with complexity.
  • Specific Projects: The Prelude Floating LNG Plant cost over $12–$21 billion,
  • Regional Variation: Middle East projects are often cheaper ($500–$800 per ton), while projects in Australia can be significantly higher, often twice as expensive as other regions.
  • Cost Breakdown: Approximately 50% of the budget is for engineering and construction, 30% for equipment, and 20% for materials.
  • Small-Scale Plants: Smaller, localised LNG plants are much cheaper, with equipment and construction typically costing in the low millions.

 

Components of Project Cost:

  • Upstream Phase: $1–$2 billion (gas production).
  • Midstream Phase: $3–$6 billion (pipelines/processing).
  • Downstream Phase: $0.5–$1.5 billion (liquefaction).

 

Australia is one of the world’s largest exporters of Liquefied Natural Gas (LNG), with major production facilities (refineries/trains) concentrated on the northwest coast of Western Australia, along the Northern Territory coast, and in Queensland.

Here are the primary LNG plant locations:

Western Australia (North West Shelf & Pilbara Region)

  • Karratha Gas Plant (North West Shelf Project): Located near Dampier/Karratha. It is Australia’s largest LNG production system.
  • Pluto LNG: Located near Karratha, operated by Woodside Energy.
  • Gorgon LNG: Located on Barrow Island, a Class A Nature Reserve off the Pilbara coast.
  • Wheatstone LNG: Located at Ashburton North, near Onslow.
  • Prelude FLNG: A floating facility located in the Timor Sea.
  • Maitland LNG: Located near Karratha, part of the West Kimberley Power Project.
  • Varanus Island Facility: Located off the coast of Western Australia.

 

Northern Territory (Darwin)

  • Darwin LNG (DLNG): Located at Wickham Point, Darwin, operated by Santos.
  • Ichthys LNG: Located at Bladin Point near Darwin, with onshore processing facilities.

 

Queensland (Gladstone)

  • Queensland Curtis LNG (QCLNG): Located on Curtis Island, near Gladstone. This was the first project in the world to turn coal seam gas into LNG.
  • Gladstone LNG (GLNG): Located on Curtis Island, operated by Santos.
  • Australia Pacific LNG (APLNG): Located on Curtis Island.
  • Micro LNG Plant: Operated by GLP Group, located near Chinchilla.

 

Other Processing & Supply Infrastructure

  • Long Island Point Fractionation Plant: Located in Hastings, Victoria, this facility processes natural gas liquids.
  • Mid-West LNG Hub: Located in Mount Magnet, Western Australia, which serves local mining and remote community needs.

 

Helium Refinery

We will build a State-owned Helium Refinery in Victoria and allocate $50m to complete the project.

The cost to build a helium refinery varies significantly based on scale, technology (membrane vs. cryogenic), and location, with capital expenditures (CAPEX) for mid-sized projects typically ranging from $16 million to over $50 million AUD, while smaller, modular units can be cheaper.

Here are the key cost factors based on industry data:

  • Mid-Scale Plant (900 tonnes/year): A detailed case study of a plant designed to produce 913 tonnes per annum of liquid helium, based on the Darwin facility, estimated the construction cost at approximately $50 million AUD.
  • Smaller Scale/Modular Units: For smaller setups, such as modular or third-party processing units, CAPEX is estimated between $9 million and $25 million.
  • Operating Costs and Feasibility: While initial construction is expensive, smaller-scale projects can provide high returns. One analysis showed that adding a processing facility with an estimated $16 million CAD CAPEX could turn a helium-enriched well into a significantly higher cash-flow producer.
  • Membrane Technology: Membrane technologies are becoming more popular for smaller, less-intensive operations compared to massive cryogenic plants, offering lower upfront investment for smaller helium concentrations.

 

Factors Affecting Cost:

  • Feed Concentration: Higher helium concentration in the source gas (natural gas) requires less processing power, reducing costs.
  • Purity Requirements: Producing “Grade A” (99.995%) helium is more expensive than lower grades.
  • Cryogenic vs. Membrane: Traditional cryogenic distillation is more expensive to build but often necessary for large volumes, while membranes can be used for smaller, higher-purity requirements.

 

Fertilizer Plant

We will build a State-owned Urea Refinery in Victoria and allocate $500m to complete the project.

Building a fertilizer plant costs anywhere from $10,000 for small-scale organic powder production to over $600 million for large-scale industrial green fertilizer facilities. Small liquid or NPK plants typically cost $21,000–$200,000, while larger commercial operations often require $1–$2 million+ in capital.

Here is a breakdown of costs based on plant type and scale:

Small to Medium Scale Fertilizer Plants

These are typical for organic, granular, or liquid NPK blending.

  • Small Organic Powder Line ($10,000–$100,000): Suitable for simple production (1 ton per hour) with moving compost turners and shredders.
  • Small-Scale Liquid Fertilizer Plant ($21,000–$50,000): 1–3 ton per hour capacity including simple mixing and filling units.
  • Medium/Large Liquid/NPK Plant ($100,000–$500,000): 5-20 ton per hour capacity with higher automation and storage tanks.

 

Large Scale Commercial Industrial Plants

  • Large Organic Pelletizing Plants ($110,000–$550,000): High-capacity organic production.
  • Commercial NPK Granular Plant ($30,000–$1.2M): Equipment costs vary wildly based on throughput (up to 40 ton per hour).
  • Industrial/Chemical Ammonia/Urea Complex ($200 Million–$600 million): Large-scale, chemical-process plants require massive infrastructure and investment.

 

Key Cost Factors:

  • Capacity (ton per hour): The primary cost driver.
  • Technology & Automation: Fully automatic systems with automated dosing and filling cost more.
  • Type of Fertilizer: Liquid, NPK blend, or organic pelletizing lines have different equipment needs.
  • Infrastructure & Land: Land leasing or purchasing can add another $6,000 to over $2 million depending on size (1,200–14,000)
  • Fast ROI Case Study: According to Huaxin Fertilizer Machinery a 5–10 ton per day plant is considered the “sweet spot” for startups and can offer a 1-to-3-month payback period.
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