Midstream Oil Operations in Australia: 2025 Trends & Insights

Australia’s oil industry is more than just drilling rigs and petrol stations. At its core lies the midstream sector—a critical, yet often overlooked, link that ensures oil flows safely and efficiently from production sites to refineries and, ultimately, consumers. As 2025 brings new regulatory frameworks, infrastructure upgrades, and energy transition pressures, midstream oil operations have never been more vital or more dynamic.

What Are Midstream Oil Operations?

Midstream oil operations encompass all the activities between the extraction of crude oil (upstream) and the refining and marketing of finished products (downstream). This includes the transportation, storage, and wholesale marketing of crude or refined petroleum products. In Australia, this sector connects sprawling resource basins—like the Cooper and Carnarvon—with coastal refineries, export terminals, and domestic markets.

• Pipelines: The arteries of the industry, moving millions of barrels of oil across vast distances.

• Storage Facilities: Critical for managing supply fluctuations and serving as buffers during market volatility.

• Shipping & Rail: Supplement pipeline networks, especially for remote or offshore fields.

Companies like APA Group, Jemena, and Viva Energy play key roles, operating much of the nation’s midstream infrastructure. Their work underpins everything from petrol prices at the bowser to Australia’s export earnings.

2025 Regulatory Shifts and Infrastructure Upgrades

This year, the Australian government has introduced a series of reforms targeting midstream oil operations, aimed at enhancing energy security, environmental stewardship, and efficiency. Notable 2025 developments include:

• Stricter Pipeline Safety Standards: New regulations require advanced leak detection systems and more frequent inspections, prompted by both environmental concerns and recent global incidents.

• Decarbonisation Incentives: Operators investing in lower-emission technologies—such as carbon capture at storage terminals—can now access expanded tax credits and grants under the 2025 Federal Energy Transition Package.

• Digitalisation Mandates: From July 2025, all midstream operators must adopt digital reporting systems for real-time tracking of oil movements, boosting transparency and compliance.

Infrastructure upgrades are also in full swing. The Northern Oil Pipeline expansion, scheduled for completion in late 2025, will double capacity between Queensland’s Surat Basin and coastal export terminals, unlocking new export potential and reducing road freight dependence.

Investment, Risk, and the Path Forward

For investors and businesses, midstream oil operations offer unique opportunities and challenges. On one hand, Australia’s stable political climate and ongoing demand for oil products make midstream assets attractive for long-term, infrastructure-focused portfolios. On the other, the sector faces risks from shifting energy policies, climate activism, and global oil market volatility.

• Renewable Integration: Some operators are diversifying by co-locating hydrogen or biofuel transit infrastructure alongside traditional oil assets.

• Resilience Planning: The 2025 National Energy Resilience Framework now requires midstream companies to develop contingency plans for cyber threats and extreme weather, further professionalising the sector.

• ESG Pressure: Investors are increasingly demanding robust environmental, social, and governance (ESG) disclosures, pushing operators toward cleaner, more transparent practices.

Real-world example: In early 2025, Viva Energy announced a $150 million retrofit of its Geelong terminal, adding solar-powered storage and advanced spill containment—moves that both comply with new regulations and appeal to ESG-focused shareholders.

Conclusion: Why Midstream Matters More Than Ever

Midstream oil operations are the unsung workhorses of Australia’s energy system. As the nation navigates its energy transition, these operators face a complex mix of regulatory, technological, and market forces. For businesses and investors, staying informed about midstream trends isn’t just smart—it’s essential to staying ahead in a fast-changing sector.