Viva Energy has opened a AUD 25 million (U.S.$16.4 million) lubricants and grease manufacturing facility in Karratha, Western Australia, expanding its supply capabilities for the mining, oil and gas, construction and industrial sectors in the Pilbara region. The new site, which began operations this month, is intended to improve supply reliability and reduce transport distances for customers in one of Australia’s most remote industrial areas.
The development reflects growing investment in regional infrastructure supporting the resources sector, where logistics costs and supply chain emissions have become key operational concerns. As Australia’s licensed Shell Lubricants Macro Distributor, Viva Energy aims to strengthen local availability of lubricants as demand grows across mining and energy production hubs.
Major lubricant suppliers are increasingly investing in regional blending and storage capacity to reduce supply disruptions and align with sustainability goals.
The Karratha facility includes 2.4 million liters of lubricant storage and a purpose-built grease production unit designed for local industry needs. Products will be shipped directly from Singapore to the Port of Dampier, bypassing Fremantle and eliminating a 1,500-kilometer road journey. Viva Energy estimates the change will reduce annual road transport and freight emissions, as well as improve delivery times across the Pilbara.
“The shift will reduce freight distance by around 30%, cutting more than 450,000 kilometers of road transport annually and lowering associated carbon emissions,” said Kerry Watson, Viva Energy’s general manager of resources and lubricants, in a press release. “The initiative supports both operational efficiency and the company’s sustainability goals, aligning with the environmental priorities of our regional customers.”
Steve Quila, general manager of lubricants and macro distribution for Shell Southeast Asia, said the direct shipping capability strengthens the Shell Lubricants brand in a key mining region and enhances supply reliability. The investment adds to Viva Energy’s growing footprint in Western Australia and supports its broader strategy to expand efficient, lower-emission fuel and lubricant logistics across the country.