Ampol will retain its Brisbane refinery after the federal government pledged funding to ensure fuel is produced in Australia.
The energy provider said the refinery would continue until at least mid-2027 as long as the government funding of up to $108 million per year was provided. About 550 people work there.
The government has pledged up to $2.3 billion be shared between the refinery and one owned by Viva in Geelong in Victoria.
Prime Minister Scott Morrison described the payments as a matter of economic and national security amid the pandemic.
Ampol last year began examining whether to continue operating its Brisbane refinery or import fuel.
The refinery had a full-year loss of $145 million in earnings before interest and tax.
Ampol boss Matt Halliday said the government support would help the refinery make a return on capital.
Ampol will also develop alternative energy at the refinery.
Shares were higher by 6.59 per cent to $27.64 at 1133 AEST.
