Darwin Company Plans to Make Diesel from Gas Condensate
Topic: Oil and Gas
A former biodiesel refinery in Darwin is now a chemical recycling facility.
In Short:
A Darwin company plans to make diesel from gas condensate.
An expert is unsure about the project's long-term success.
What's next?
The company's CEO says production will start in July.
A Darwin company plans to make diesel from local gas condensate to create a domestic fuel supply. The company currently recycles waste oils and chemicals from the LNG industry.
The company is finalizing agreements to buy gas condensate from Central Australia. The CEO says this could lead to cheaper and more reliable fuel for Darwin.
Darwin had the second-highest diesel price in April 2026.
Gas condensate is a by-product of gas extraction. It is a liquid at surface pressure and temperature. The company will initially refine it offshore.
The CEO says the production method could result in cheaper fuel.
The proposed operation could meet half of Darwin's fuel demand. The company plans to build a tank farm at East Arm.
The port CEO confirmed a possible site for the tank farm has been identified.
The port is working on several projects with the company, including diesel production.
A site for 16 storage tanks has been identified at East Arm.
Not the most efficient source
An expert is uncertain about the project's long-term feasibility.
The expert says the plan would not be efficient without the current fuel crisis.
The expert says the proposal does not make economic sense normally.
Australia produces a lot of condensate, including in the Northern Territory.
Most of the condensate is sent overseas.
Possibility of Darwin fuel refinery
The company plans to refine diesel offshore initially, but wants a domestic refinery.
The CEO believes Darwin is a good location for a domestic refinery.
The first shipment of gas condensate will leave Darwin in July.
The fuel will initially be a 30% blend of biofuels and 70% hydrocarbons.
The company will adjust the fuel composition over time based on input supply.
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