Australia Naphtha Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2025-2034)

Key Market Trends and Insights:

• Australian Capital Territory dominated the market in 2024 and is projected to grow at a CAGR of 5.4% over the forecast period.
• By type, the light segment is expected to register 5.3% CAGR over the forecast period.
• By end use, agriculture is expected to register 5.3% CAGR over the forecast period, due to vital role in producing agrochemicals, such as pesticides and herbicides.

Market Size & Forecast:

• Market Size in 2024: AUD 3.75 billion
• Projected Market Size in 2034: AUD 5.99 billion
• CAGR from 2025-2034: 4.80%
• Fastest-Growing Regional Market: Australian Capital Territory

The primary driver for the Australia naphtha market development is the increasing demand for petrochemical products, such as plastics, synthetic fibers, and resins. In February 2025, the APA Group disclosed plans to invest USD 75 million to expand the East Coast Gas Grid and the Moomba to Sydney Ethane Pipeline, enhancing gas supply reliability and reducing the need for liquefied natural gas (LNG) imports. This expansion is crucial for supporting petrochemical industries that rely on naphtha as a feedstock.

Australia’s rising urban population fuels demand for consumer goods and infrastructure, indirectly boosting naphtha consumption through increased petrochemical production.

As per Macrotrends, Australia’s urban population reached 23,091,181 in 2023, showing a 2.63% increase from 2022. Greater construction, automotive, and packaging industries correlate with higher naphtha use.

Recent Developments

July 2025

Diamond Edge Ventures invested in Australian firm Licella Holdings to accelerate the global deployment of its Catalytic Hydrothermal Reactor technology. The resulting bio-oil can be refined into sustainable aviation fuel (SAF), bio-naphtha, and renewable diesel, offering a renewable alternative to traditional naphtha derived from fossil fuels.

June 2025

XCF Global and Continual Renewable Ventures signed an MoU to establish New Rise Australia, a platform for producing Sustainable Aviation Fuel and renewable diesel. Utilizing XCF's modular, patent-pending site design, the venture aims to accelerate Australia's transition to renewable fuels, aligning with decarbonization goals.

May 2025

Australian energy company Woodside and Saudi Aramco explored a partnership for Aramco to acquire a stake in Woodside’s 16.5 million t/yr Louisiana LNG project. The collaboration targets low-carbon ammonia and integrated energy solutions. Potential synergies include leveraging Aramco’s naphtha and hydrocarbon expertise to enhance feedstock flexibility and fuel diversification strategies.

March 2025

Mining3 and Low Emission Technology Australia partnered with hte GmbH to develop catalytic technology reducing methane emissions at Australian mines. The resulting methane could be converted into naphtha, providing a cleaner energy source. This approach integrates emissions abatement with renewable hydrocarbon production, supporting decarbonization and chemical feedstock diversification.

Key Trends and Drivers

Integration of Carbon Capture Technologies

The Australia naphtha market outlook is impacted by the growing deployment of carbon capture, utilization, and storage (CCUS) technologies in production processes. In January 2025, Santos and Beach Energy have launched the Moomba CCS project in South Australia's northeast. This facility aims to inject captured CO₂ into depleted reservoirs in the Cooper/Eromanga basins, with a storage capacity of up to 1.7 million tonnes annually. The adoption of CCUS aligns with global efforts to mitigate climate change and is becoming a significant factor in the naphtha industry's sustainability strategies.

Expanding Refining Industry

Australia’s refining sector growth, exemplified by significant projects like Viva Energy’s Geelong refinery upgrade, supported by substantial investments in infrastructure and modernization, is increasing naphtha output and supply. The Geelong refinery, one of only two major refineries operating in Australia as of 2025, has recently undergone upgrades to produce low-sulfur petrol aligned with current fuel quality standards. This integration closely links refining sector developments with rising naphtha demand in Australia.

Technological Advancements

Innovations in refining and cracking processes are enhancing naphtha yield and efficiency across Australia. The adoption of hydrocracking and catalytic technologies is improving production flexibility, enabling better adaptation to market demand and sustainability goals. These advancements are crucial as Australia seeks to meet both domestic energy needs and international environmental commitments. For instance, BASF's introduction of the Fourtiva™ Fluidized Catalytic Cracking catalyst has optimized naphtha octane levels and LPG olefinicity, while minimizing coke and dry gas production.

Infrastructure Investment

Continuous investments in industrial infrastructure, including storage and transportation facilities, support the Australia naphtha market expansion by ensuring steady availability for downstream industries. For instance, Mobil Oil Australia’s recent upgrades at Vopak’s Port Botany Terminal, including additional storage tanks and a new truck-loading bay, enhance the reliable supply and distribution of fuels, including naphtha, across Sydney and Melbourne. These infrastructure enhancements not only improve logistical efficiency but also help stabilize market prices and meet growing industrial demand for naphtha in petrochemical and refining sectors.

Shift Toward Bio-Based Naphtha

The market is witnessing a shift towards bio-based naphtha, driven by sustainability initiatives and the need to reduce carbon footprints. In 2021, Sherdar Australia Bio Refinery developed Australia’s first renewable diesel facility, producing bio-based fuels including naphtha for sustainable energy. Bio-based naphtha is produced from renewable sources, offering a cleaner alternative to traditional fossil-derived naphtha. This trend is gaining momentum as industries seek to meet stringent environmental regulations and consumer demand for greener products.

Australia Naphtha Market Share

The Australia heavy naphtha market share is increasing, especially in the manufacture of high-octane gasoline and as a feedstock for reforming. Recent strides in catalytic reforming and hydrocracking technologies have raised the yield and value generated from heavy naphtha streams to encourage high-quality fuel and chemical derivatives production. BP’s 2024 commissioning of its new hydrocracking unit at the Kwinana Energy Hub is an example of how advancements in processing technology are increasing efficiency and sustainability. These technology developments are increasingly important to meet changing energy needs and tough environmental regulations.

Rising Naphtha Applications in Paints and Coatings & Petrochemicals in Australia

Australia's paints and coatings industry uses naphtha for its high solvency and quick evaporation properties, which are well suited for products of enamels, varnishes, and industrial coatings. DuluxGroup’s investment in the expansion of its Merrifield paint plant in Victoria, have driven the industry's demand for good-quality solvents such as naphtha. The plant incorporates the latest automation and environmentally friendly production technology, solidifying Australia's ability to service domestic and export coating requirements.

Petrochemicals top the Australia naphtha market growth since they are an essential feedstock in the manufacture of ethylene, propylene, butadiene, and aromatics, which are vital ingredients for the production of plastics, resins, and synthetic fibers. These are building blocks of innumerable manufactured items. Downstream industries like plastics, synthetic fibers, and specialty chemicals drive demand for naphtha in petrochemicals.

Australia Naphtha Market Regional Analysis

New South Wales & Queensland to to Witness High Naphtha Demand

New South Wales (NSW) should be classified as a prominent industrial user in the Australia naphtha industry due to its solid industrial base and energy consumption habits. In 2023–24, 24.2% of Australia's total energy consumption occurred in NSW, and oil made up 46.6% of that mix. This heavy reliance on oil means that the state's naphtha demand is considerable, with the bulk catering to its petrochemicals and transportation consumers. The presence of major refineries and industrial precincts adds to demand for naphtha consumption.

Queensland is arguably another significant naphtha consuming state through its vast industrial activity and energy consumption. In 2023–24, Queensland accounted for 24.4% of Australia's total energy consumption, with oil making up 37.5% of the energy mix. This suggests strong local naphtha use, especially in the petrochemical and manufacturing sectors. Queensland's industrial base, featuring chemical manufacturing and energy generation, drives its naphtha use.

Competitive Landscape

Major players in the Australia naphtha market are adopting a variety of methods aimed at maintaining competitiveness and securing supply. A primary focus is on diversified sourcing, whereby refiners and importers buy their naphtha from a range of suppliers aboard to minimize risks relating to geopolitical issues and logistics. Long-term contracts and partnerships with large global producers are used to ensure consistent pricing and availability, particularly regarding naphtha's role as a feedstock in petrochemicals.

Process optimization and refinery integration aim to enhance yields and decrease costs of production while providing flexibility to either make gasoline or naphtha fractions depending on changing market conditions. Price hedging and market intelligence are also applied to predict price movements in crude oil and to modify a company's procurement strategy accordingly. Finally, sustainability considerations allow players to investigate low-emission production technologies and more energy efficient distributions in external shipping practices to align with Australia's carbon reduction objectives.

Shell Australia Pty Limited

Established in 1901, Shell Australia is headquartered in Melbourne, Victoria. The company pioneered Australia's first oil refinery and fueled Qantas's inaugural commercial flight. It leads in natural gas production and invests in renewable energy and carbon abatement technologies, supporting Australia's low-carbon transition.

Chevron Phillips Chemicals Australia Pty Ltd

Founded in 2000 through a merger of Chevron USA and Phillips 66, Chevron Phillips Chemicals is headquartered in The Woodlands, Texas. It revolutionized polyethylene production with its loop slurry process and developed the Aromax technology for efficient benzene production, holding over 1,000 related patents.

Exxon Mobil Corporation

Formed in 1999 from the merger of Exxon and Mobil, ExxonMobil is headquartered in Irving, Texas. It introduced the SCANfining process to reduce gasoline sulfur content and initiated the Global Climate and Energy Project at Stanford University to develop low-emission technologies.

LG Energy Solution Australia Pty Ltd

Established in 2020, LG Energy Solution is headquartered in Seoul, South Korea. A spin-off from LG Chem, it is a global leader in lithium-ion batteries, holding over 78,000 patents. The company is advancing all-solid-state battery technology and aims for carbon neutrality by 2050.

Other players in the Australia naphtha market are Mitsubishi Australia Ltd., SABIC Australia PTY LTD, BP PLC and others.

Key Features of the Australia Naphtha Market Report

• Comprehensive quantitative analysis covering production, consumption, and price trends in Australia.
• In-depth segmentation by type, application, and region with growth forecasts.
• Historical data and five-year projections for accurate market trend identification.
• Competitive landscape profiling major players and their strategic initiatives.
• Detailed supply chain, import-export, and distribution channel insights.
• Market drivers, restraints, and opportunities impacting growth dynamics in Australia.

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