Leaked documents have revealed that eleven massive fuel tanks, built to support US military operations in the Indo-Pacific, were constructed in Darwin Harbour without the required building permits.
Designed to store 300 million litres of military-grade jet fuel, the $270 million project was announced in 2021 as a key asset for US defence operations in northern Australia. Then-Northern Territory Chief Minister Michael Gunner highlighted the NT’s growing role as a defence hub. The tanks were built on land leased from the Land Development Corporation, a government agency.
Project Caymus: Delays and Legal Issues
US firm Crowley was awarded the contract in 2021 to construct and manage the facility. Known as Project Caymus, construction began in January 2022, with an expected completion date of September 2023. However, the facility remains non-operational, and the tanks have yet to store fuel.
According to Crowley, the delay is due to water seeping into the leak detection system. The company insists it is working to resolve the issue promptly and expects completion within the year, stating safety, responsibility, and legal compliance are its priorities.
Building Permits Overlooked
Despite these assurances, correspondence obtained by the ABC highlights a significant legal oversight. A letter from NT Director of Building Control Mark Meldrum to Crowley Australia’s executive director, David Attewill, confirms the tanks were built without legally required permits under the Northern Territory Building Act.
All construction projects in Darwin must obtain a building permit before work begins. Meldrum’s letter states that the fuel tanks qualify as structures and require both building and occupancy permits. Since construction proceeded without these, Crowley is in breach of the Building Act, and enforcement measures could follow.
Unclear Next Steps
Crowley argues that a development permit was granted in November 2021 for the land use, but this permit explicitly states it does not allow building work. Developers were advised to secure a building permit separately.
Questions remain about why construction was permitted to continue without proper approval. When approached, Meldrum did not clarify why this was allowed or whether penalties had been imposed on Crowley.
The NT Department of Lands, Planning, and Environment stated it is working with Crowley to ensure compliance with NT and Australian safety regulations and is receiving specialist engineering defence assistance.
Contractor Turnover and Project Uncertainty
While Crowley remains the project’s owner, multiple contractors have been involved. Initially, Australian firm Saunders International was the lead builder, but its contract was terminated in April 2023. The company confirmed its work was completed in full compliance with relevant codes and permits before its departure.
US-based Latitude 63 then took over, but it also exited the project in October 2024. The company declined to comment due to contractual obligations.
Adding to the uncertainty, David Attewill, Crowley’s executive director in Australia, stated he is no longer connected with Project Caymus. Former NT Chief Minister Michael Gunner has also been contacted for comment.
With the tanks still empty and questions surrounding regulatory oversights, the project’s future remains uncertain.
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