East Arm’s US Defence Force tank farm opening delayed again

America’s East Arm tank farm has been delayed again. Read what’s holding it up.

The United State Defence Force tank farm project under construction at Darwin’s East Arm is tracking seven months behind schedule.

The $270m development was due for completion in September, but is now not expected to receive first fuel until April.

Florida-based Crowley Solutions was awarded the project construction tender in September 2021 and Australian company Saunders International won the $140m design and construct contract to build the 11-tank facility.

Then in April 2023, Crowley announced Saunders had been dumped from the project and replaced by American tank-farm construction specialist Latitude 63.

In August the NT News reported the tank farm opening had been set back from September 15 to an undisclosed date in December.

Aerial view of the Crowley US gas tank farm. November 23, 2023. Picture: Sierra Haigh

Unofficial sources say the opening has now blown out to April, and the latest delay comes as insiders voice concerns about a potential blowout in the project cost.

Last year heavier than expected wet season downpours were blamed for delays to the project but as more information has emerged, it appears ordering issues were why the project was set back.

The NT News has been told the project was a year behind schedule when Latitude 63 replaced Saunders.

One issue related to long-lead equipment not being ordered in advance which meant work had to pause for long periods during the dry season and was too dangerous when the equipment had arrived by the Wet.

“The project’s probably 90 per cent complete,” the source said.

“The last 10 per cent is finalising all the details and buttoning up the physical work then commissioning to make sure it’s safe and ready for fuel.

“If all the equipment had been ordered the project could have been ready for fuel in December, but items weren’t procured when they should have been and that pushed it out.”

When operational, the tank farms will hold up to 300m litres of military specification fuel for use by the US Defence force.

In October, the US completed work on a new $110m tank construction project at RAAF Base Darwin.

Master Builders NT has calculated Defence is expected to invest $6.2bn in the Northern Territory over the next four years.

Reforms negotiated between Master Builders and Defence meant that over the past six years, local firms delivering Defence projects have grown by 40 per cent.

Chief executive Ben Carter said 70 per cent of all money spent on Defence projects in the NT since 2017 has gone to Territory businesses.

“There are three years between 2023-24 and 2025-26 when dollars being spent on defence infrastructure in the Territory is expected to exceed $1bn, with approximately $1.3bn being spent in 2024-25,” he said.

“This is a huge good news story for Territory business and households. A strong construction industry is a major driver of a strong economy, and the Territory economy is forecast to grow by a massive five per cent over the next three years.”

Originally published as East Arm’s US Defence Force tank farm opening delayed again