Viva Energy says it is keen to be involved in the proposed western Sydney airport at Badgerys Creek after completing the purchase of Royal Dutch Shell’s Australian aviation business.
The deal, first announced in December 2016, is worth US$250 million (A$343 million) and allows the fuel refiner and supplier to expand its operations into local airports.
Viva Energy chief executive Scott Wyatt described the airline sector as a “growing business that is so important for the economy”.
“Viva Energy is already well positioned to supply major metropolitan airports, as well as the 40 smaller airfields where we have refuelling infrastructure, but there is room to grow,” Wyatt said in a statement on Wednesday.
“Australian airlines and regional airports need fuel suppliers who have a national supply chain, provide reliable service, and are prepared to invest in infrastructure to help them grow.”
Under the deal, Viva will keep the Shell brand for the Shell Aviation Australia aviation business under licence in a similar arrangement to the Shell petrol stations it operates around Australia.
Viva Energy’s Geelong refinery is the only facility to produce avgas in Australia. The company also has about 20 storage terminals around the country.
Further, Wyatt noted Viva Energy was keen to grow its operations at Melbourne Airport and keen to be involved in supplying fuel to the proposed western Sydney airport at Badgerys Creek due to open in 2026.
“With other industry suppliers, we also look forward to increasing jet fuel storage and pipeline capacity to Melbourne airport to support additional airline demand at one of the fastest growing airports in the country,” Wyatt said.
“Our fuel import terminal in Sydney’s west is well placed to offer a supply solution for the recently announced Western Sydney Airport, and we intend to be a supplier to our customers at this airport when it is opened.
“Our commitment to supporting regional areas is equally strong, with the development of jet fuel storage in Cairns to support the far-north Queensland market, and plans to further support other regional airfields where we will have a strong presence.
“We have already committed to constructing additional jet fuel storage at our Newport Terminal in Melbourne, and upgrading our trucking facilities at our Geelong refinery in Victoria.”
The federal government committed to build the proposed Badgerys Creek airport after Sydney Airport chose not to take up its right of first refusal on the construction and operation of the new airport.