Anthony Albanese has announced a $4m study to establish a large-scale oil refinery in Western Australia. The Prime Minister travelled to Karratha on Monday to announce the study to explore the option of building a third oil refinery to strengthen the country’s fuel security.The refinery will be jointly funded by the Cook Labor government and built by chemical and fertiliser company Perdaman. “This is an extraordinary project and an example of what Australia can achieve with vision, with optimism, with working between government and the private sector,” Mr Albanese said. “This is going to generate billions and billions of dollars going forward but through employment economic activities through agriculture.”The project marks the first agreement under the Labor government’s $10m support strategy for expanding fuel refining capabilities, with Mr Albanese saying it will help “build our resilience as a nation” and “set us up for the future”.Mr Albanese also slammed previous Coalition governments for closing oil refineries. “It would be better if the Coalition had never been elected,” he said. “Maybe if that had happened, they wouldn’t have sent manufacturing offshore.”WA Premier Roger Cook said he was proud to support a project that would prioritise “getting fuel in bowsers” for WA residents. “We are doing everything were can to address these concerns by working with the commonwealth to provide steady and experienced leadership and continue delivering our Made in WA plan,” he said.“This includes diesel to support the regional communities which drive WA’s economy and which have been most at risk amid this conflict.”The proposed refinery would join the two existing refineries in Geelong and Brisbane and mark the newest addition in 60 years. “The thing about Perdaman is they have proven themselves to get things done,” Resources Minister Madeleine King said. “For a company like Perdaman to come to government and say we’re going to look at this … it’s got to have some strength behind it, and I believe it has.”Foreign Affairs Minister Penny Wong also supported the need for Australian solutions to oil shortages, saying Mr Albanese’s announcement will support “a return to refinery capacity in Australia”.“We need to look at what we can do here in Australia to shore up our resilience,” she said. “I know the Prime Minister will be making announcements today about our intention to try and support a return to refinery capacity in Australia.”Treasurer Jim Chalmers expanded on the oil market crisis, saying Australians have already paid “too hefty a price” for the fallout of the ongoing Middle East conflict. “The longer this drags out the more serious the consequences for inflation and growth here and around the world,” he said. “From an economic point of view, a proper and permanent end to the war can’t come soon enough.”Opposition MPs have also backed the project but have outlined potential flaws. Nationals leader Matt Canavan said he supported the idea but noted the Labor government’s carbon tax would limit the economic prosperity of the proposed project. “I’d love to see a new oil refinery built, but to do that we’ve got to get rid of Labor’s carbon taxes,” he told News24 on Monday. “We’re not going to get a new oil refinery in this country while this government imposes a massive carbon tax on existing refineries and new ones would be subject to the same.”Senator Canavan and Opposition Leader Angus Taylor will travel to the Stanwell power station in Rockhampton on Tuesday. Opposition foreign affairs spokesman Ted O’Brien said the project should have come earlier and contradicted Energy Minister Chris Bowen’s stance towards fossil fuels. “On one hand, you’ve got Chris Bowen, the Energy Minister, on the world stage saying no more fossil fuels,” he said.“And then you’ve got the Prime Minister of Australia saying we need more fossil fuels.“The contradiction in Labor’s energy policy explains why Australians are paying higher prices for energy than they ever have and why energy markets are now pulling back investments from Australia.”Energy Minister Chris Bowen described the project as a “sensible and prudent response to secure our energy security.” “Our Government will continue to work hard to ensure fuel supply remains secure now, while working with all states and territories to build a more sovereign and secure energy system for our country for decades to come.”