Work Commences on Territory’s Largest Fuel Storage Facility

18 January 2022

Preliminary works are underway to build the Northern Territory’s largest fuel storage facility in Darwin, with construction to begin by the end of this month.

The facility will be located at East Arm, at the Land Development Corporation’s Bulk Liquids Area, and will hold up to 300 million litres of fuel.

The $270 million project will play a pivotal role in servicing US defence operations in the region, with the infrastructure used for the transfer, management and storage of military specification jet fuels.

In September, the United States Government awarded the tender to provide fuel storage and management services in support of the U.S. military to Crowley, a U.S. based company with global energy and logistics services. 

In December, the Land Development Corporation and Crowley Australia Pty Ltd. reached an agreement on the land and signed a long term lease.

Crowley Australia Pty Ltd., the Australia-based Crowley subsidiary, will manage the development and subsequent ongoing operations of the $270 million facility.

Saunders International has been awarded a $140 million contract by Crowley for the design and construction of 11 jet fuel tanks for the facility. In addition to the design and construction contract Saunders will provide Engineering, Procurement and Construction Management services to Crowley.

Initial works being carried out on site include early clearing of the site, and developing vehicle access ahead of construction beginning.

This follows the project having been granted approval from the NT Environmental Protection Authority and a Development Permit for construction.

The project will create around 400 jobs during construction and support an additional 20 employees once the facility is operational late next year.

Darwin’s strategic 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’s economy. 

Quotes from Chief Minister Michael Gunner:

“It’s great to give Crowley’s Sean Thomas a warm welcome to the Territory, and to have him out on the ground at East Arm to check out the initial works.

“This investment opportunity will create hundreds of jobs for Territorians just a short drive from the CBD and Palmerston, and local businesses will also feel the flow-on benefits.

“The Territory is becoming a leading hub for defence and national security, because of our strategic location and capabilities, and because of our can-do attitude.”

Quotes from Crowley Solutions Vice President Sean Thomas:

“Crowley is excited to see work on the fuel storage facility in Darwin begin. We appreciate the dedication of our team and collaboration from all stakeholders including the NT Government. 

“These collective efforts will allow Crowley to provide important fuel storage and management services to the U.S. military, as well as strengthen our growing presence within Australia and the Northern Territory.”

Quotes from Land Development Corporation CEO Tony Stubbin: 

“The groundworks underway herald the start of construction of the new facility and provide an exciting look ahead for site activity for the new year.

“LDC looks forward to seeing Crowley’s 300 million litre fuel facility at the Bulk Liquids Area in East Arm to support strategic fuel storage and the US-Australian defence alliance.”