BP has announced its decision to close its key oil refinery in Brisbane in Australia. The move will be a major set back for the country's oil supply security. Following the closure, the country will be able to meet only a third of its domestic petrol and diesel demand in Australia.

The company announced on Wednesday that it will close down its Bulwer Island refinery in Brisbane in 2015. The close will result in a loss of a total of more than 350 jobs. BP has decided to take the product from Caltex's Lytton refinery and will also keep its storage units at Bulwer Island on 'care and maintenance'.

BP might also start importing its own oil as it is doing in Adelaide. The company has established an oil import terminal Adelaide. The stronger value of the Australian dollar is affecting the industry. Shell closed down its Clyde refinery in 2012, Caltex decided to close down Kurnell refinery in 2014 and Mobil decided to dismantle its Port Stanvac refinery in South Australia.

"Market reality global refining capacity is shifting to service the energy growth areas of the globe and is doing so with very large port-based refineries," said Andy Holmes, president of BP Australasia.