US tank farm delivery delayed by at least three months

The United States Defence Department will have to wait to access 11 fuel tanks they’re building in Darwin. Find out what impact it will have.

Completion of the US Defence Department’s $270m bulk fuel storage facility at Darwin’s East Arm has been delayed.

Originally expected for completion on September 15, this publication understands the US Department of Defence is now preparing for a mid-December commissioning.

The delays stem from project challenges that dog projects in northern Australia, with electrical storms in particular causing slippage in the construction schedule throughout the Wet Season.

The time overrun is expected to result in an increase in project expenditure, although a final figure has yet to be confirmed.

The Crowley tank farm during the early construction phase at East Arm

This publication understands delays could prove costly for the US-based company which is missing out on income that was expected to begin flowing when first fuel arrived.

United States government services provider Crowley is building, and will operate, 11 storage tanks at East Arm with capacity to store up to two-million barrels of jet fuel.

It is understood that site tanks and bunding works had been completed and are currently undergoing testing, with pipework, roadworks and ancillary buildings now being the current focus.

Latitude 63, who took over managing the construction from Saunders International, arrived in Darwin in April fresh from Fairbanks, Alaska, where it had completed building a similar but smaller fuel storage facility for Crowley.

The United States Defence Force wants to decentralise the nation’s bulk fuel storage facilities with regional tank farms located strategically around the globe.

Saunders officials with former chief minister Michael Gunner at the announcement of the East Arm tank farm with Major Projects Commissioner Jason Schoolmeester.

The military build-up by the Chinese in the Indo-Pacific has prompted the United States and Australia to develop a regional strategic response.

Crowley’s website said Darwin’s location supported the United States’ Pacific defence and logistics strategy.

“As government contractors who have performed around the world, including Alaska, Africa and Asia, Crowley has successfully performed fuel supply, storage and distribution for more than a century,” it said.

“We appreciate the dedication of our team and collaboration from all stakeholders including the NT government,” the website said.

“These collective efforts will allow Crowley to provide important fuel storage and management services to the U.S. military, as well as strengthen our growing presence within Australia and the Northern Territory.”

The United States Embassy in Canberra has been contacted for a response.

Originally published as US tank farm delivery delayed by at least three months