In a Statement of Issues, the ACCC questioned whether the latest sale could reduce competition for fuel terminal services in the region and prevent the entry of independent fuel suppliers into the Gladstone regional market.

The commission said it would finalize its stance on the matter after reviewing all submissions received by December 23 and announce its final view by January 27, 2011. 

Caltex and ExxonMobil have operated adjoining terminals at Gladstone under a joint terminal agreement since 1997, under which their separate assets are operated by one management entity, with each party having certain rights to use the other’s assets.

The assets ExxonMobil proposes selling to Caltex include two unleaded petroleum tanks (6,580 kiloliters and 2,140 kl), a premium unleaded petroleum tank (2,750 kl), two diesel tanks (4,420 kl & 3,110 kl), associated infrastructure and unused land that could be made suitable for additional tanks, the ACCC said in its Statement of Issues. The financial arrangements of the sale were not disclosed. The ACCC in July gave its clearance for local convenience store operator 7-Eleven to acquire ExxonMobil’s network of 295 service stations in eastern and southern Australia and on-sell 30 of the sites in South Australia to local convenience store operator Peregrine Corporation after ordering 7-Eleven to divest three of the sites and Peregrine to divest one. The acquisition made 7-Eleven the largest independent fuel retailer in Australia, Platts reported earlier.

ExxonMobil had originally agreed to sell its retail network to Caltex for A$300 million in May 2009, but that deal failed to clear the ACCC. The competition watchdog announced in December 2009 that it would oppose the acquisition due to its likely impact on local market competition for the supply of gasoline, diesel and automotive LPG, and Caltex finally called off the deal on April 29.