Construction tender awarded for $270m fuel storage facility at Darwin's East Arm to support US defence operations

© Provided by ABC Business The facility is aimed at bolstering US defence operations in the Northern Territory. (Supplied: LSIS james Whittle)

A $270 million fuel storage facility will be built in Darwin over the next two years to support continued US defence operations in the Top End.

With a capacity of 300 million litres, the facility will be the largest fuel storage project in the Territory once built.

It will be built at East Arm at the Land Development Corporation’s future Bulk Liquids Area site, neighbouring the existing 174-million litre Vopak fuel storage facility. 

The US government’s Defence Logistics Agency has awarded the construction tender for the facility to Florida-based logistics, government, marine and energy solutions company Crowley Government Services.

The project is expected to create about 400 jobs during construction and 20 ongoing roles. 

Chief Minister Michael Gunner said the investment would further position the Northern Territory as a key hub for defence and national security projects.

“It means it’s more likely we will receive funding from the Australian government for fuel storage here as well — it makes sense for them to do that,” he said.

“It will probably also [lead to] additional demand as we see a lot more activity through our harbour, from many nations.” 

Crowley Solutions vice-president Sean Thomas said the company was honoured to win the contract.

“This latest contract award for fuel storage services in Darwin reinforces the 70 years of mateship between our nations,” he said. 

“We are grateful to be welcomed into the local community and look forward to connecting and working with the Northern Territory government, the Larrakia people and the commercial sector.”

Land Development Corporation chief executive Tony Stubbin said construction of the facility would create more construction jobs and drive competition in Australia’s fuel storage market.

The project is expected to start operation in late 2023. 


Video: Construction shut down across Victoria (Sky News Australia)

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