Australia to take control of oil stocks

CANBERRA, Australia: Australia’s government is ready to take emergency control over the nation’s oil stocks to meet energy shortages in a mining boom state caused by an explosion at a natural gas plant, the prime minister said Wednesday.

Western Australia state, a major exporter of iron ore and natural gas, lost 30 percent of its natural gas supplies on June 3 when Apache Energy’s plant at remote Varanus Island was shut down by a pipeline explosion. No one was injured.

Rudd said he told state Premier Alan Carpenter on Wednesday that the federal government was prepared to use an emergency law that would enable it to control production, transfer and stocks of Australia’s oil.

Last week, the Defense Department halted an order for 1.6 million gallons (6 million liters) of diesel for the navy so the supplier, a BP refinery in Western Australia, could sell it to local customers.

AP