Construction of $270m NT fuel storage facility to create 400 jobs

The Northern Territory’s largest fuel storage facility in Darwin is gearing up for the beginning of construction at the end of the month, with preliminary works to prepare the project site now underway. 

The $270 million project is going to be built at East Arm as part of the Land Development Corporation’s Bulk Liquids Area. 

With the capacity to hold up to 300 million litres of fuel, the facility will play a vital role in servicing the region’s US defence operations by providing infrastructure for the transfer, management, and storage of military specification jet fuels. 

“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,” Land Development Corporation CEO Tony Stubbin said. 

US-based company Crowley was awarded the tender to provide fuel storage and management services by the United States Government back in September 2021. 

Following the tender award, the Land Development Corporation and Crowley Australia Pty Ltd – the Australian subsidiary of Crowley – reached an agreement and signed a long-term lease for land where the new facility is going to be built. 

Crowley Australia will manage the development as well as subsequent ongoing operations of the fuel storage facility. 

“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 with Australia and the Northern Territory,” Crowley Solutions Vice President Sean Thomas said. 

In turn, Crowley awarded a $140 million contract to Saunders International for the design and construction of 11 jet fuel tanks for the facility. Saunders will also be providing engineering, procurement and construction management services to Crowley. 

Ongoing initial works on the project include early site clearing along with the delivery of vehicle access. This follows the approval from the NT Environmental Protection Authority as well as the grant of Development Permit for the construction of the facility. 

The new fuel storage facility is anticipated to create up to 400 jobs during its construction and support approximately 20 additional jobs once the facility is up and running by late 2023. 

“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,” Chief Minister Michael Gunner said. 

Source: Northern Territory Government Newsroom; NT Independent; ABC News; 7news.com.au