Ampol has flagged approximately $35 million in damages at its Lytton Refinery caused by Cyclone Alfred earlier this month.
Ampol has successfully restored normal production at the refinery following disruptions caused by Cyclone Alfred. The refinery was placed into a safe recirculation mode ahead of the cyclone’s landfall, resulting in approximately ten days of lost production before a full restart was completed over the weekend of 15 and 16 March 2025.
The preliminary cost estimate for the incident is approximately $35 million, with around half expected to be recovered through insurance. This includes $20 million for repairs to the damaged floating roof and increased demurrage costs of around $5 million per month over the next three months as the supply chain is optimised.
During the period of intense winds and heavy rainfall that followed Cyclone Alfred’s impact, damage was sustained to a crude storage tank’s floating roof. This led to crude flowing into a designated bunded area on Tuesday, 11 March 2025. Cleanup efforts are currently underway, and the tank is being emptied to facilitate necessary repairs.
Despite this setback, Ampol has confirmed that three other crude tanks remain in service, ensuring continued refinery operations. The company also noted that it is not uncommon for refineries to operate with some tanks out of service due to maintenance requirements.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.