23
Sep

New East Arm US fuel facility tender awarded to Crowley Government Services Inc

A tender for the construction of a $270 million fuel storage facility in Darwin has been awarded.

THE US government has awarded a tender for the construction of a $270 million fuel storage facility in Darwin, aimed at supporting American defence operations in the region.

The 300 million litre facility will be the largest fuel storage scheme in the Territory, and will be built at East Arm, at the Land Development Corporation’s future bulk liquid’s area.

On Monday, the US Defense Logistics Agency announced Florida company, Crowley Government Services Inc, which employs more than 6300 people worldwide and has an annual revenue of more than $2.5 billion as the successful tenderer.

The new bulk liquids area at East Arm will neighbour the existing Vopak fuel storage facility, which has a capacity of 174 million litres.

The proximity of the new facility also capitalises on the proximity of the East Arm Wharf, which is strategically located to utilise the existing pipe rack infrastructure while accommodating future expansion opportunities.

The latest announcement comes after Territory company, the Airport Development Group, was 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.

Chief Minister Michael Gunner said the project would create around 400 jobs during construction and support an additional 20 employees once the facility became operational in late 2023.

“The Territory is becoming a leading hub for defence and national security because of its strategic location and capabilities,” he said.

“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.

It means more jobs for Territorians during construction, as well as permanent positions once the multimillion litre facility is up and running.”

Crowley Solutions vice president Sean Thomas said the company was “honoured the US government continues to recognise and trust our record of reliable energy solutions supporting the US military around the world”.

“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 provide a boost to construction jobs and enhance competition in the local fuel storage market.

Extracted from the NT News