Crowley tank farm trouble continues with questions around chief contractor

The livelihoods of Territory businesses and workers are on the line as ongoing delays continue to plague a major Territory project. Read the latest.

The Top End’s $270m bulk fuels development has been hit with more delays as uncertainty continues to swirl around the troubled project.

Under construction at Darwin’s East Arm on behalf of the United States military, the strategically important tank farm development has been riddled with delays since work began in January 2022.

The US military had originally intended to take possession of the 11 tanks in September 2023, but at the time sources close to the project said the project had been hit with “catastrophic delays”.

This masthead has been told questions remain around how commissioning company Crowley will continue with the project, given the tank linings are understood to leak.

Alaskan-based head contractor Latitude 63 has been in charge of the job since replacing Saunders International in 2023.

Key players including former chief minister Michael Gunner at the signing of contracts for the East Arm tank farm in 2021.

It is understood a number of Territory companies working at the site were temporarily locked out this week, but have since returned on site.

This masthead has unsuccessfully attempted to contact principals at Crowley and Latitude 63, but the owner of one business caught up in the turmoil said the project’s future was unclear.

Issues continue to plague the new tanks. Picture: Sierra Haigh

He said his staff arrived at the tank farm construction site on Wednesday to be told the head contractor had been removed and the work had stopped for the foreseeable future.

He said he had no idea how long his crew would be off the work site and he had not been formerly notified by Crowley or Latitude 63 about the project’s future.

His crews were back at work on Friday.

Work on the project commenced in November 2021, with Australian company Saunders tasked with the lead builder’s role.

That arrangement ended in April 2023, with Latitude 63 chosen to replace Saunders after long construction delays.

At the time, Saunders told the Australian Stock Exchange Crowley had presented it with a Notice of Termination for Convenience, which ended its time on the project.

More recently the builders and NT Government have been at odds over certification of the tanks, with claims the liners beneath the fuel storage containers were leaking.

The facility is intended to store 300 million litres of military-grade jet fuel to support American defence activities in the Territory and Indo-Pacific region.

Originally published as Crowley tank farm trouble continues with questions around chief contractor