Fuels Pty Limited (DCF) is a company that is working towards becoming a major
player in the Australian fuel processing industry. Rather than refining
crude oil, Darwin Clean Fuels will process condensate, a light petroleum
liquid that condenses at atmospheric temperature and pressure that is
produced in conjunction with the extraction of natural gas normally
associated with the production of LNG. Condensate requires less complex
processing to produce quality petrol, diesel, jet
fuel to meet Australian fuel standards. Processing condensate produces 75%
less emissions than crude oil to produce high quality transport fuels.
Products to be produced by DCF will meet the new 2022 aromatic standards as
well as the new 2027 Euro 6 standards.
DCF plans to develop, construct and operate a 100,000 barrels
per day (bpd) condensate and LNG processing plant in Darwin at a cost of up
to US$2 Billion to produce high quality transport fuels (98,95, & 91
octane) gasoline, diesel, jet fuel, fuel oil).
DCF and McDermott
entered into agreement for a bankable feasibility study (BFS) on 31 October
2019 which also incorporated agreement for FEED, FID and EPC construction.
The results from the BFS will be available in August but preliminary data
indicates strong project viability at good KPI’s.
Australia imports over 600,000 bpd (60%) of its current transport fuel
requirements which is expected to substantially increase by 2027. Australia
currently produces in excess of 250,000 bpd of condensate the bulk of which
is exported. Condensate production is forecast to increase to over 300,000
bpd by 2030. The new processing plant will replace imports of high quality
petrol, diesel, LPG and jet fuel to the Northern
Territory market and will export petrol to markets such as Asia, and Australia's
East Coast and beyond.
The Darwin Clean Fuels project capitalises on Darwin's proximity to the
Timor Sea and Northwest shelf gas fields and Asia, Darwin's natural deep
water port, the new Oil & Gas hub on Middle Arm, Darwin as well as the
new transcontinental Austral Asia Railway linking Australia's northern and
The project FEED is anticipated to commence in 2020/21 followed by
construction. The project will initially employ over 400 construction
workers, with 130 full-time employees after project commissioning. The
project will add to fuel security in Australia and be able to produce in
excess of 10% of Australian fuel requirements.