Caltex diesel sales rise due to commodities boom

Caltex Australia Ltd. says most of its growth will come through diesel fuel sales. Managing Director Des King said the company would spend almost A$1 billion (US$840 million) over the next three years to boost growth opportunities, particularly in the diesel fuel market. “This (spending) will include completing refining improvement projects and strengthening infrastructure, including terminals, depots and service stations, as well as maintenance and compliance work across the company,” King said. He said diesel fuel offered the best growth prospect because of the China-led commodities boom, increasing demand from the resources industry for machinery and vehicles. Caltex has earmarked A$250 million (US$210 million) for additional diesel fuel production capacity at its Brisbane refinery. “That (investment) will increase our capacity to make diesel fuel by about 40% across all of Caltex,” King said. He said Caltex’s diesel fuel sales grew by almost 9% for the first six months ended June 30, compared with 7% for the overall Australian diesel fuel market. Australia’s largest oil refiner said it was on track to deliver 11 billion liters of petrol, diesel fuel and jet fuel from its two refineries for the full year, compared with 10.2 billion liters in 2006. (August 25, 2007)