BP to cease production at Kwinana Refinery. Credit: bp p.l.c.

British energy giant BP has reportedly stopped importing oil for its Kwinana Refinery in Western Australia as part of the decommissioning plan.

A spokesman was cited by Reuters as saying that the refinery, claimed to be the largest of its kind in the country, is planned to be decommissioned by the end of March 2021.

Last year, BP said that it would close fuel production at the 65-year old Kwinana Refinery located on the shore of Cockburn Sound at Kwinana, near Fremantle, and convert it to an import terminal to help strengthen fuel security for Western Australia.

The company said that the refinery is no longer economically feasible due to the regional oversupply and continuous lower refining margins.

After exploring various options for the refinery’s future, it made the decision to go ahead with the conversion of the facility to an import terminal.

A BP spokesman was reported by the news agency as saying in an emailed comment: “Crude imports have stopped, and all processing at the plant is in the shutdown phase which will be completed by the end of March 2021.”

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The Kwinana refinery, which was offered government incentives to keep it operational for national security, is the first of the remaining four refineries in Australia to be closed.

In February, Exxon Mobil announced plans to close its 90,000bpd Altona refinery located 13km west of Melbourne.

The refinery can produce up to 14.5 million litres of refined products per day.

Ampol is also mulling options for the future of its Lytton refinery located in Queensland.