Morrison Government gives $30m for $60m fuel storage facility in Darwin

The Morrison Government has put in millions for a new $60m fuel storage facility in Darwin.

THE Morrison government has put in $30m for a new $60m, 80 megalitre fuel storage facility in Darwin.

The Airport Development Group has been given a grant as part of the federal government’s $260m program to expand Australia’s diesel storage capacity to boost the nation’s long-term fuel security.

The project, near Vopak’s East Arm facility, is expected to create about 115 jobs. The federal government said grants cover up to 50 per cent of a project’s expenditure and projects were expected to start construction this year and would be completed within three years.

Airport Development Group (ADG) chief executive officer Tony Edmondstone confirmed the $30m grant from the federal government would be matched dollar for dollar by the organisation.

“The significant federal government grant will enable Airport Development Group to construct a new diesel storage facility in Darwin and provide local industry with competitively priced and secure access to this critical resource,” he said.

“The development of key industries such as tourism, defence and mining rely on the consistent supply of fuel and this new facility will provide that.

“ADG has enormous confidence in the long-term future of the Northern Territory and we will continue to invest in major projects that will grow our economy, provide jobs and deliver benefits to our community.”

The Darwin project is one of 10 the federal government is backing through its Boosting Australia’s Diesel Storage program, increasing its diesel stockholdings by 40 per cent.

Energy and Emissions Reduction Minister Angus Taylor said the grants would increase the volume of diesel stock Australia can keep onshore.

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“We are delivering on our commitment to protect Australian motorists from fuel disruptions by building around 780 megalitres of diesel storage across the country,” he said.

“Diesel is vital to Australia’s energy security as it keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture.”

NT Senator Sam McMahon said the grants were helping ensure Australian families and industry could access the fuel they need, when they need it.

“Many of these projects are located in strategic regional locations like Darwin, which will help minimise shortages of diesel during peak usage periods,” Dr McMahon said.

“They will drive more than $636m of public and private sector investment into these areas. This investment will ensure local truckies, tradies, farmers and commuters have access to the reliable fuel they need.”