Viva Energy says Geelong refinery nears full output after April fire

Viva Energy says its Geelong refinery is returning to more than 90% of normal output after the April fire, marking a major step in the recovery of one of Australia's most important fuel assets.

The company said the refinery's residual catalytic cracking unit, or RCCU, has restarted and associated processing units are coming back into service. The restart is significant because it helps restore fuel yields and pushes the plant closer to normal operation.

But the fire damage is not fully resolved. Viva says the alkylation unit hit in the blaze is expected to remain offline until at least 2027, leaving the site without a key unit that turns LPG into high-octane petrol blending components.

The company now says the outage is likely to weigh more on refinery economics than on total production volume. In other words, the plant can run at a high rate, but the product mix and margins may still be affected for some time.

What happened in April

The fire broke out at the Geelong refinery on April 15, briefly heightening concern about fuel supply in Victoria and southeastern Australia. Early reporting said the blaze lasted about 13 hours before it was extinguished.

The fire affected the part of the plant involved in producing petrol blending components. Earlier coverage said diesel and jet fuel output were less affected than petrol production, which was hit harder by the outage.

Viva later said preliminary investigations found the fire was caused by the failure of a section of piping within the alkylation unit. The company has not yet given a final decision on whether the unit will be repaired or replaced.

Why the restart matters

The RCCU is a core part of the refinery's recovery because it helps lift output and improve the economics of the site. When that unit returns, associated processing units can move back into service and the refinery can regain more of its normal run rate.

In early May, Viva said repairs to damaged processing units were expected to take about six weeks and that the RCCU restart was targeted for June. The latest update suggests that timetable has now largely played out, with the refinery back to more than 90% of normal capacity.

That is important not just for Viva but for the wider fuel system. The Geelong refinery supplies petrol, diesel and aviation fuel across Victoria and southeastern Australia, and it is one of only two major refineries still operating in Australia.

What remains offline

The main remaining loss is the alkylation unit. That unit upgrades LPG into high-octane petrol blending components, so its absence reduces the refinery's ability to make the most valuable gasoline products even if overall throughput is near normal.

That makes the current issue more about margins than volume. Viva's latest guidance indicates the refinery can keep producing at a high level, but the prolonged outage of the alkylation unit may reduce the profitability of each barrel processed.

The expected downtime also pushes the operational question well beyond the immediate repair window. A unit remaining offline until at least 2027 suggests a longer-term repair or replacement decision is still ahead.

Safety and investigations

The April fire also left a wider safety and regulatory process in its wake. Fire Rescue Victoria and WorkSafe Victoria are among the agencies involved in the broader investigation picture, and the cause has not yet been formally closed out by investigators.

Viva's preliminary finding points to a piping failure in the alkylation unit, but that is not the same as a final public determination from authorities. The regulatory review matters because the refinery is a critical fuel asset and the incident involved a unit tied directly to petrol production.

For now, the practical story is recovery. Geelong is moving back toward normal output, but the financial and operational effects of the fire are likely to linger because one high-value unit remains out of service.

What to watch next

The key unanswered question is whether Viva will repair the alkylation unit or replace it entirely. The company has not yet set out a final plan, and the expected timeline suggests any permanent fix will take time.

Another point to watch is whether the improved run rate flows through to better reported production and refining margins in coming quarters. The refinery is back near normal volume, but the commercial impact of the outage may still show up in earnings.

Investors and fuel users will also be watching for any further updates from investigators on the cause of the fire and any knock-on regulatory implications.

For now, Viva's latest update marks a clear operational recovery from the April blaze, even if the refinery is still not fully back to its pre-fire configuration.