‘Key piece’: Loss of Altona refinery sparks wider manufacturing warning

Mr Kennedy said major manufacturers such as Qenos relied on products from the Altona refinery and would now likely have to source that material from China, which was less reliable.

In 2010, Australia had seven refineries and will now have just two after Exxon Mobil’s move on Altona followed BP Australia’s decision to shutter its Kwinana site in Western Australia.

The announcements mean the number of refineries operating in Australia will have halved since last year’s federal budget unveiled a $2.3 billion support program amid concern about the nation’s fuel security. That budget scheme was accelerated in December with funding brought forward by six months.

At the time, Energy Minister Angus Taylor said the strategy would create 1000 jobs. Mr Taylor has been contacted for comment.

Mr Kennedy said the support could not make up for the lack of plans for energy and for advanced manufacturing and the fact that BP and Exxon Mobil had both decided not to take it up showed it was insufficient.

“It’s lazy thinking and reckless with taxpayer money, it is kicking the can down the road,” he said.

Mr Kennedy said it was likely the plant would close in about October as Exxon Mobil looked to quickly focus its attention elsewhere in its global operations.

Some workers might secure redeployment into Exxon Mobil’s upstream oil operations but the future for those businesses, including in Bass Strait, was not bright either, he said.

“This company has made it quite clear it doesn’t see a future in Australia,” he said,

“The oil component will run down to dry in Bass Strait in five years.”

Exxon Mobil was approached for comment.

Construction of the Altona refinery began in 1946 and it commenced operation in 1949.

Exxon Mobil had not publicly stated whether it would seek support from the government to keep the plant open.

The two remaining refineries are Viva Energy’s plant in Geelong, which is signed up to the government’s support scheme, and Ampol’s site at Lytton in Queensland.

Mr Kennedy said he believed Lytton was also likely to close and declined to comment on the prospects for the Viva plant in Geelong.

A parliamentary library report published in December noted local refineries were "relatively small and old and have to compete against larger and more efficient refineries in the Asian region".

The report also noted there were concerns in some quarters that the loss of refining capability could leave Australia vulnerable to supply disruptions.

Local federal Labor MP Tim Watts said the news was a "jobs disaster" and questioned whether local chemical businesses that relied on the refinery would now be under a cloud.