Australia’s fuel security has long been a quiet concern within industry circles. Today, it is anything but.  

A convergence of geopolitical chaos, declining domestic refining capacity, and aging infrastructure has pushed the issue into the spotlight, raising questions about how the nation powers itself in an increasingly uncertain world.

Our roots in Australia’s fuel sector stretch back more than half a century. For James Hollis, who leads our engineering services division, the current moment represents a turning point long anticipated.

“We’ve got a very strong background in refining and fuels,” he said, tracing the engineering services business back to its origins servicing Shell’s Clyde refinery in Sydney. That legacy continues today, with engineering capabilities spanning oil and gas, defence fuels, and broader industrial sectors.

Over this journey, the landscape has shifted dramatically. Australia’s refining capacity has steadily declined over the past decades, with operators moving offshore in search of lower costs. The result is a nation increasingly reliant on imported fuel.

That exposure has become more visible amid ongoing global tensions. Supply disruptions linked to conflict in the Middle East have underscored how dependent Australia is on international fuel supply chains – and how vulnerable those chains can be.

Compounding the issue is the country’s limited fuel reserves. While regulations call for 90 days of strategic storage, Australia currently sits at around a third of that.

In the short term, expanding fuel storage is the most achievable solution. Compared to building new refineries, increasing storage capacity is faster, less complex, and more commercially viable.

“The low-hanging fruit will be an increase in storage capacity,” James said. “That’s something that can be stood up relatively quickly in the grand scheme of things.”

However, he is quick to point out that storage alone is not a silver bullet.

“Increasing our strategic reserve from 30 days to 90 days is good and necessary, but it only buys us time.”

If supply were disrupted closer to home, particularly within Southeast Asia, the impact could be far more severe. In that scenario, even a 90-day reserve may prove insufficient, forcing a harder conversation about rebuilding domestic refining capability.

Ventia’s work with Australia’s defence fuel network reflects this priority. The company provides engineering, technical, and operational support across a highly distributed portfolio of assets, helping to strengthen resilience and expand capacity. 

“There’s been quite a few projects in that space,” James said, pointing to increased investment in storage and infrastructure across aviation, marine, and ground fuels.

James predicts similar levels of investment in industrial fuel storage initiatives in the near-term. 

A shrinking talent pool

While the need for investment is clear, delivering it presents another challenge: capability.

As refining and fuel-related work has declined in Australia, so too has the domestic talent pool. Many experienced professionals have either left the industry or moved overseas, creating a skills gap. Similarly, many Australian businesses who once occupied this space have long since pivoted to more prospective disciplines.  

“One of the challenges is going to be resourcing these projects with people who actually know what they’re doing,” James said. “Much of this expertise has to be brought in from overseas.”

This is where Ventia sees a competitive advantage. With decades of continuous experience in fuels and a multidisciplinary engineering base, the company remains one of a limited number of players with deep, local expertise.

Part of that capability lies in scale. Ventia’s engineering services span the full asset lifecycle – from concept and approvals through to design, construction, and ongoing operations. 

“We’re able to deliver projects end-to-end,” James said. “That includes detailed design, construction, commissioning, and then into operation and maintenance.”

This integrated model is particularly valuable in complex infrastructure projects, where coordination across multiple phases and stakeholders can be a major risk factor.

Looking ahead, there is a growing expectation that government action on fuel storage will accelerate. Recent events have exposed vulnerabilities that can no longer be ignored.

“Public scrutiny and geopolitical uncertainty are combining to push fuel security higher up the national agenda,” James said. 

For industry, the message is clear: the era of complacency is over. Investment in infrastructure, capability, and people will be critical to ensuring Australia can weather future disruptions. And for companies like Ventia, long embedded in the fabric of the nation’s fuel and energy sector, the challenge now is not just to adapt, but to help lead the way forward.

Talk to us about your infrastructure challenges today.

First published by Energy Today and reproduced with permission.

More about James