Viva Energy’s restart of the Residue Catalytic Cracking Unit at its Geelong Refinery marks a significant recovery milestone following the fire that occurred on 15 April 2026, with the company expecting production to return to over 90% of normal capacity as the RCCU and associated units return to operation this week. The completion of restart works is the most critical near-term outcome from the incident, as this unit plays an essential role in converting lower-value refinery intermediate products into higher-value finished products.
The financial impact of the disruption is evident in the reported April and May Geelong Refining Margin of US$23.9 per barrel, calculated from refining intake of 6.5 million barrels. This GRM reflects both reduced production volumes and lower margin yields directly attributable to the incident, as well as increasing crude oil price premiums during the period. The RCCU restart should allow the refinery to improve its GRM by restoring its ability to maximize product yields and convert intermediate streams more efficiently into premium finished products.
However, the announcement reveals a longer-term operational constraint that requires careful investor consideration. The Alkylation unit, which converts liquefied petroleum gas by-products into gasoline, remains isolated from refining operations and is not expected to return to service throughout 2027. While the company is conducting an assessment of repair or replacement options with highest priority, the current evaluation of fire damage indicates the unit will remain offline for at least 18 months. This extended absence will constrain the refinery’s capacity to convert LPG into gasoline, directly limiting the facility’s ability to produce certain higher-margin finished products and reducing conversion flexibility across the refining operation.
The company’s preliminary investigation indicates the fire was caused by failure of a section of piping within the Alkylation unit itself, which released fuel that subsequently ignited. The company credits its refining team’s immediate response with containing the fire and minimizing broader plant impacts. The investigation remains ongoing, with the company working alongside insurers on property damage and business interruption claims. The outcome of insurance settlements will likely carry material implications for Viva Energy’s financial position over coming quarters.
For investors, the RCCU restart represents a positive near-term development that should support operational recovery and refining margins approaching normal levels. Yet the Alkylation unit outage creates a material headwind that will persist throughout 2027, limiting refinery upside and requiring investors to factor in reduced conversion flexibility for at least 18 months. The pace of insurance claim resolution and any decisions regarding permanent replacement of the Alkylation unit merit close monitoring, as these will determine whether the current outage timeline extends beyond 2027 or whether accelerated repair and restoration might occur sooner. This announcement has been classified as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
About Viva Energy Group Limited (ASX: VEA)
Viva Energy Group Limited is an energy company operating in Australia, Singapore, and Papua New Guinea with three main business segments: Convenience & Mobility, which operates fuel and convenience retail under brands including Shell and Coles Express; Commercial & Industrial, which supplies fuel and lubricants; and Energy & Infrastructure, which includes refining and pipeline operations. The company is Australia’s second-largest vertically integrated refined transport fuel supplier with a significant refining operation in Geelong.
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