The United States Government has awarded a tender to construct a $270 million fuel storage facility in Darwin, to support US defence operations in the region.
The US Defense Logistics Agency has announced the owned and operated contract has been awarded to Florida company, Crowley Government Services Inc, which employs more than 6,300 people worldwide and has an annual revenue of more than $2.5 billion.
The 300 million litre facility will be the largest fuel storage facility in the Territory, and will be built at East Arm, at the Land Development Corporation’s (LDC) future Bulk Liquid’s Area.
The Territory Labor Government has welcomed the announcement, which will create around 400 jobs during construction, and support an additional 20 employees once the facility is operational in late 2023.
LDC’s future Bulk Liquids Area at East Arm neighbours the existing Vopak fuel storage facility, which in comparison holds 174 million litres.
The location supports the importance of national security, defence and fuel security for resilience, which is a key priority of the Territory Economic Reconstruction blueprint for boosting the Territory economy.
The proximity of the future Bulk Liquids Area capitalises on the proximity of the East Arm Wharf, which is strategically located to utilise the existing pipe rack infrastructure. Expansion opportunities for future Bulk Liquids Area occupants can be accommodated.
The award follows Territory company Airport Development Group being awarded $30 million by the Federal Government’s Boosting Australia’s Diesel Storage grant program to construct 80 million litres of new strategic diesel fuel storage.
Quotes from Chief Minister Michael Gunner:
“The Territory is becoming a leading hub for defence and national security, because of our strategic location and capabilities.
“This investment further cements us as Australia’s comeback capital, and demonstrates our ability to deliver not only for the nation, but for our international allies.
“We welcome this investment – it means more jobs for Territorians during construction, as well as permanent positions once the multi-million litre facility is up and running.”
Quotes from Land Development Corporation CEO, Tony Stubbin:
“The Land Development Corporation looks forward to working with Crowley and the Airport Development Group to develop two new fuel storage facilities in the Bulk Liquids Area at East Arm, Darwin.
“Construction of the facilities will provide a boost to construction jobs and enhance competition in the local fuel storage market.”
Quotes from Crowley Solutions Vice President, Sean Thomas:
“Crowley is honored the U.S. government continues to recognize and trust our record of reliable energy solutions supporting the U.S. military around the world, built upon our values of safety, integrity and high performance.
“This latest contract award for fuel storage services in Darwin, reinforces the 70 years of mateship between our nations.
“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.”