(EnergyAsia, October 16 2014, Wednesday) —- Caltex Australia said it has completed the two-year conversion of its 58-year-old oil refinery at Kurnell in Sydney into the country’s largest fuels import terminal this week.

With the loss of the 124,500-b/d refinery, Caltex, half-owned by US major Chevron, will be left with only the Lytton plant in Brisbane. The company spent A$270 million to convert the refinery which resulted in the loss of some 350 jobs. (US$1=A$1.15).

The Kurnell terminal has a 750-million litre capacity to store and supply fuel to retail sites and commercial customers across New South Wales and the area around Canberra.

In 2012, Australia’s largest downstream operator announced plans to downsize its refinery business as it could no longer compete against larger and more efficient refineries coming onstream in Asia and the Middle East.

The ASX-listed company will look to boost its retail, supply and trading operations to offset the negative influence of its refining business.

Early this year, it acquired Australian retailer Scott’s fuel divisions including its businesses known as Scott’s Agencies and Sabadin Petroleum for A$95 million. Caltex said the acquisition of Scott’s 28 retail sites and 18 depots has added to its expanded supply chain including the A$85 million fuel terminal at Pelican Point in South Australia.

In a statement, Caltex Australia managing director and CEO Julian Segal said the conversion of Kurnell marked the transformation of Caltex from two businesses, refining and marketing, into one integrated transport fuel supply chain company.

“The strong progress of the closure and conversion works has presented Caltex with the opportunity to undertake a company-wide cost and efficiency review, which we announced on 25 August 2014. This will give Caltex the financial strength to maintain its market leadership position and to enable us to capture future growth opportunities,” he said.