A US$270 million bulk fuel storage facility on Darwin Harbour, built to support US military operations in the Indo-Pacific, is now reportedly under scrutiny for being constructed without the required building permit.

The facility, developed under Project Caymus, was designed to store up to 300 million liters of military-grade jet fuel and was announced in 2021 as a cornerstone for US defense operations based in Australia’s north. 

At that time, then-Northern Territory (NT) Chief Minister Michael Gunner proudly declared the project a symbol of the NT’s “can-do attitude” and its emerging role as a major defense hub. 

US company Crowley, which won the tender to build and manage the facility, began construction in January 2022. Although the project was slated for completion in September 2023, the facility remains non-operational. 

Crowley has cited issues such as “water intrusion in the leak detection system” as reasons for the delay. The company further assured that repairs would be completed later this year while emphasizing its commitment to safety and compliance.

Trouble began when correspondence from February 20, 2024, revealed that the fuel tanks were built without a building permit, a legal requirement under the Northern Territory Building Act. 

The ABC report noted that in a letter addressed to Crowley’s Australian executive director, NT Director of Building Control Mark Meldrum stated that the tanks qualify as “structures” under the Act and therefore require both a building and occupancy permit. 

“As the project is nearing completion without a building permit in place, you are currently in breach of the [building] act,” the letter warned, adding that enforcement measures could be initiated if the issue isn’t resolved swiftly.

While Crowley maintains that a development permit was issued in November 2021 to allow the land’s development, the permit explicitly notes that it does not authorize any building work. 

It instructs the permit holder to secure a building permit from a Northern Territory registered building certifier before starting any demolition or construction.

Originally, Australian-based Saunders International was the lead builder for Project Caymus. However, their contract was terminated in April 2023, following which US-based Latitude 63 took over construction responsibilities. 

Latitude 63 exited the project in October 2024, leaving further questions about the project’s management and compliance. 

A spokesperson for the NT Department of Lands, Planning, and Environment noted that they are working with specialist engineering defense assistance to ensure that the tanks meet all necessary NT and Australian standards. 

As the project nears its completion, the spotlight is now on Crowley to address the building permit breach. 

The NT Building Control authorities have not confirmed whether any enforcement actions have been taken or are forthcoming, adding to the uncertainty surrounding Project Caymus as legal and operational challenges persist. 

Key Asset For US Forces

The bulk fuel storage facility on Darwin Harbour is a critical asset for the US Air Force and stands as the largest purpose-built fuel storage site in northern Australia. It complements two additional fuel storage tanks recently constructed at the Royal Australian Air Force Base in Darwin. 

The expansion of fuel storage in northern Australia aligns with the United States’ broader strategic objectives in the Indo-Pacific, where rising tensions with China have heightened concerns about potential conflict. 

The US is expanding its capacity to store and manage military-grade jet fuel to guarantee that its warplanes, stationed at and operating from Darwin’s military base, remain mission-ready in the event of an escalation. 

Darwin’s geographic position makes it a particularly valuable location for both Australia and its allies. Situated in the Northern Territory, it provides a forward-operating position in the Pacific and allows for rapid deployment and sustained military operations across the region. 

The area is home to key Australian Defense Force (ADF) assets, including intelligence, surveillance, and reconnaissance capabilities, as well as vital training grounds supporting Australian and allied military activities.

Given these strategic advantages, it is not surprising that the US is making such huge financial investments in defense infrastructure in northern Australia. 

While officials from both countries have been cautious in their public statements, the fuel storage facility will clearly play a crucial role in supporting US military operations. 

In addition to ensuring a steady fuel supply, the facility is likely part of a broader effort to improve logistical and operational readiness and strengthen the US presence in the region. 

Moreover, the expansion of US military capabilities in northern Australia is not just about preparing for potential conflict, it also serves as a deterrent. 

The presence of American forces and infrastructure in the region sends a clear message about the US commitment to regional security, potentially discouraging adversaries from aggressive actions. The ability to rapidly refuel and sustain military aircraft in the Indo-Pacific further enhances the credibility of US defense commitments.

Each year, northern Australia hosts a six-month rotation of around 2,000 US Marines and American military aircraft under the “enhanced air cooperation agreement” between the two nations. 

This annual deployment is part of the United States’ effort to shift its strategic focus toward the Indo-Pacific and guarantee that it remains a dominant military force in the region.

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