Explosions, toxic smoke as massive fire breaks out at Geelong refinery

An out-of-control fire continues to burn at a Geelong refinery that is one of two in Australia, supplying 50 per cent of Victoria’s and 10 per cent of Australia’s fuel.

The blaze at the Viva Energy refinery in Corio broke out just after 11pm Wednesday, triggering explosions and sending a cloud of toxic smoke towards Geelong.

A company source, granted anonymity as they were not yet authorised to speak, said the fire had damaged two of the refinery’s gasoline production units.

Viva Energy ramped up production recently after Donald Trump’s war against Iran led to the Islamic Republic closing the Strait of Hormuz, sparking global fears of fuel shortages.

But the Geelong refinery has now temporarily cut its output of petrol, diesel and jet fuel down to “minimum rates” following the major fire damage.

Fire Rescue Victoria’s assistant chief fire officer Mick McGuinness described the refinery blaze as “quite ferocious” and said it started in the plant’s Mogas section, which helps produce high-octane fuels.

“There’s been a significant leak of liquid hydrocarbons and gases that have fuelled the fire,” McGuinness told reporters just after 8am.

He said about 50 firefighters and 10 firefighting vehicles – including FRV’s boat in Corio Bay – fought the blaze, which was contained to an area about 30 metres by 30 metres.

“We’d estimate at least another four to five hours of fire to be burning,” McGuiness said.

“However, we are starting to see a drop-off in the intensity of the fire, which is indicating that the pressures are reducing, and we’re getting less flow of the liquids and the gas.”

He added authorities did not yet know what caused the fire as investigators had not been able to access the spots where the blaze started.

Energy Minister Chris Bowen confirmed the fire would impact petrol production at the refinery, which can process up to 120,000 barrels of oil per day, according to Viva’s website.

“At this point, production of jet fuel and diesel is continuing at the refinery at reduced levels for safety reasons as a precaution,” Bowen told Nine’s Today on Thursday.

“At this point, the impact is mainly on petrol production, but obviously, this is very early days.”

There were dozens of workers at the Viva plant when the fire started, and union representatives are relieved it didn’t happen at a busier time of the day.

Tony Hynds, an organiser with the Australian Manufacturing Workers Union, joined dozens of others on the scene outside Viva on Thursday morning.

“We’ve been told there were about 30 people on the site, most of them operators,” he said.

“When the first explosion happened they had to take off and get out of there pretty quickly. I’ve been told there was a small explosion and then two large ones, and then a large fireball.”

Australian Workers Union secretary Ronnie Hayden, who was on the scene on Thursday morning, described the scene as like a “war zone”.

“Some [workers] were pretty close to it, but they managed to run to get away from it,” he said. “They said it was like ‘a big bloody fireball coming straight for us’.”

Viva Energy’s plant in Geelong has been underwritten by significant government support to secure Australia’s two remaining refineries.

The federal government in March boosted its Fuel Security Services Payment, which kicks in during loss-making periods.

Viva has said the scheme, introduced in 2021, allowed it to spend $500 million upgrading the Geelong refinery.

Bowen said the facility would “take some time to repair” and production had been reduced as a precaution.

He acknowledged the fire added to pressure on Australian fuel stocks that are already in short supply due to the war in the Middle East.

“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: buy as much fuel as you need, no more, no less,” he said.

The minister said the facility would “take some time to repair” and that production had been reduced as a precautionary measure.

McGuinness, FRV’s assistant chief fire officer, said some flames were up to 60 metres in height.

A warning was issued for dozens of suburbs just after 2am when a wind change blew toxic smoke from the blaze towards Geelong.

Thousands of residents were told to close their doors and windows, and turn off their heating and cooling systems.

The warning area was downgraded shortly before 5.30am and contained to the suburbs of Corio, Norlane and North Shore, which directly surround the fire. There is no threat to the public.

Another major refinery in Texas also suffered a fire on March 23, just as oil prices to spiked dramatically due to conflict in the Middle East.

On Monday, Bowen said Australia’s fuel reserves stood at 38 days of petrol, 28 days of jet fuel and 31 days of diesel.

Meanwhile, the war in the Middle East rages on. The US president this week implemented a blockade of the Strait of Hormuz in an attempt to force Iran into letting oil ships through.

The Geelong refinery engulfed in flames on Thursday was built by Shell, dates back to 1954, and employs more than 1100 people.

There are no reports of injuries.

With Reuters

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