BP, the largest supplier of fuel to Australia’s mining and industrial sector, says it has plans for a $20 million expansion of its Largs North fuel terminal in Adelaide. This will allow the company to continue to grow its business in South Australia and provide customers with even greater security of supply.

Work has already begun on the design of two additional 30 million litre storage tanks and construction will begin in the second half of 2011. At the same time a rail gantry will be built within the terminal to allow the transportation of fuel throughout the state by rail.

As the South Australia mining and transport markets continue to grow, rail movement of fuel offers a reduction in the number of truck movements and an improvement in the efficiency and safety of transporting large volumes of fuel around the state.

BP’s Largs North terminal is already the largest storage facility in the region, and when complete the new tanks will double its diesel storage capacity. The increased capacity will provide options to bring in product via the shipping patterns from BP’s Kwinana refinery in Western Australia and, should the need arise, allow larger imports from Asia, adding to the flexibility of BP’s supply capability.

Paul Waterman, President BP Australasia, said; “The new tanks, combined with the new rail loading gantry will provide flexibility and additional supply security to our customers in South Australia.”

“This announcement follows the recent award of four exploration blocks offshore South Australia which will see BP investing $1.4 billion in seismic and drilling activity over the next six years.”

Mr. Waterman said the new facility was just one of many being developed by BP and follows a multi-million dollar investment programme in new and up-graded terminals in Western Australia, New South Wales and Queensland.