The Queensland state government is advancing multiple initiatives to increase domestic fuel production, including opening state-owned land at ports for fuel infrastructure, fast-tracking oil and gas exploration in the Taroom Trough, and supporting potential expansion of an existing refinery in Eromanga. These actions have drawn support from industry groups and criticism from environmental organizations, while federal authorities have declined to grant national-interest exemptions for fossil fuel projects under current environmental laws.
State Government Fuel Infrastructure Initiatives
The Queensland government has announced the Accelerating Fuel Infrastructure Program, which will make state-owned land near ports available for private companies to build fuel storage facilities and, potentially, refineries. The ports included are located in Brisbane, Townsville, Mackay, Gladstone, Bundaberg, and Abbot Point in Bowen.
The program, which opened for expressions of interest on May 3, 2026, includes an audit of potential land, rapid market engagement, and streamlined approval processes for new oil projects.
Premier David Crisafulli stated that the program is part of the Queensland Fuel Security Plan, intended to improve fuel security and "sovereign capability" to reduce dependence on global supply chains. Crisafulli did not confirm whether financial incentives would be offered but said providing land allows the market to address the need.
Malcolm Roberts from the Australian Institute of Petroleum, representing BP, Ampol, Mobil, and Viva Energy, noted that companies expect government support for storage, as storing fuel is not currently profitable.
Opposition Leader Steven Miles said the plan does not provide immediate cost-of-living relief to Queenslanders. Deputy Opposition Leader Cameron Dick expressed concern that benefits from the plan might not reach Queenslanders.
Taroom Trough Exploration and Development
The Queensland government has approved new oil and gas exploration in the Taroom Trough, a 750-square-kilometer area near Miles in southern Queensland. Deputy Premier and Planning Minister Jarrod Bleijie announced a Works Regulation on Friday that allows the Coordinator-General to fast-track development of the Taroom Trough.
The region is described as a "tight" oil and gas field requiring hydraulic fracturing (fracking) to extract resources from rock 3-4 kilometers underground.
Major energy company Shell has initiated production of 200 barrels of oil daily from the Taroom Trough, which is suitable for domestic use.
Minister for Natural Resources and Mines Dale Last stated: "My message to industry is clear; I'll sign, you drill." He confirmed any gas produced would be directed to the Australian market, not for export.
Keld Knudsen, Director of Australian Energy Producers, said that expanding exploration sites is essential for sustaining fuel supply to sectors including transport, mining, and agriculture. Omega TN Pty Ltd, Tri-Star Stonecraft Pty Ltd, and Drillsearch Energy Pty Ltd have been appointed as preferred tenderers for the project.
Tony Wood, a senior fellow at the Grattan Institute, noted that analysis suggests liquid resources from the Taroom Trough could produce petrol, diesel, and aviation fuel. Wood described the potential as substantial but cautioned about the unforeseen complexity of the drilling operation, noting the resource is "older, deeper, and more impervious for the purposes of traditional extraction," requiring fracture stimulation.
Richard Cottee, chair of Elixir Energy, which holds an interest in the Taroom Trough, expressed confidence in advancements in horizontal drilling technology, arguing that projects close to existing infrastructure and with significant reserves can be economic.
Infrastructure and Refinery Expansion in Western Queensland
The Inland Oil Refinery (IOR) in Eromanga, a town of fewer than 50 residents located approximately 1,000 kilometers west of Brisbane, has operated since 1986. The refinery produces up to 1,250 barrels per day of solvents and diesel, sourcing crude oil from the Cooper-Eromanga basin and South Australian oil fields.
Its products include low-emissions diesel for underground mine operations in regional New South Wales, solvents for chemical manufacturers, and a small amount of on-road diesel for the local community.
IOR chief executive Drew Morland stated that the refinery's output is mainly restricted by supply and that the Taroom Trough development could enable expansion. He said increased production in western Queensland could create opportunities for producers, the refinery, local communities, and Australia's fuel security.
Omega Oil and Gas chief executive Trevor Brown, whose company has used IOR during testing, said discussions about future expansion are planned. Bridgeport Energy chief executive Christian Lange described IOR as "strategically critical" because it supplies diesel to the mining industry. Queensland Minister for Natural Resources and Mines Dale Last stated the government is working with industry on infrastructure needs, including the potential to build a new refinery in Queensland.
Federal-State Disagreement on Environmental Approvals
Premier David Crisafulli has called on the federal government to alter current environmental approval processes to expedite oil projects in the Taroom Trough.
Current federal environment laws, enacted this year, permit "national interest" exemptions for projects but specifically exclude fossil fuel initiatives. Crisafulli stated that "unlocking the Taroom Trough is critical to locking in future national fuel security" and announced plans to construct roads and trunk infrastructure to support the proposed oil field.
Federal Environment Minister Murray Watt acknowledged mechanisms exist for simplifying approvals for oil and gas projects but rejected the state's request for national exemptions for fossil fuels under the Environment Protection and Biodiversity Conservation Act. Watt suggested that Crisafulli should focus on immediate fuel cost and supply issues rather than long-term projects.
Western Downs Mayor Andrew Smith endorsed the expedited approval process for Taroom Trough exploration, anticipating new investment and job creation for the region. Smith noted the shift to oil exploration after 50 years of focus on gas in the area.
Environmental and Regulatory Concerns
The Queensland government's approval of new oil and gas exploration in the Taroom Trough has drawn opposition from conservation groups, including Lock the Gate and the Queensland Conservation Council.
Ellen Roberts, national coordinator for Lock the Gate, expressed concerns about groundwater contamination from deep gas wells and stated the approval goes against a pre-election promise to protect prime agricultural land.
Clare Silcock of the Queensland Conservation Council stated that the announcements contradict the state government's emissions reduction target of 75 percent below 2005 levels by 2035 and that the government is facilitating coal and gas industries while hindering renewable energy development.
The Regional Planning Interests (Lake Eyre Basin) Amendment Regulation 2024 currently restricts further oil extraction from the Cooper Basin. Quilpie Shire Council has requested a review of this regulation and the Environment Protection and Biodiversity Conservation Act 1999. Quilpie Shire Mayor Ben Hall called for the Cooper Basin to be included in national discussions about local fuel supply.
Broader Energy Policy Context
The LNP government also changed the law to prevent the 1.2 GW Forest Wind project from proceeding and has called in Iberdrola Australia's 500 MW Bundaberg Regional Battery proposed for Gin Gin, potentially delaying it.
Minister Bleijie cited 337 public submissions regarding the battery, including objections related to fire risk, environmental impacts, and other concerns. The government's energy roadmap includes $1.6 billion to extend the operation of coal power stations.