Australia strengthens military fuel supplies

A Royal Australian Navy MH-60R helicopter conducts an in-flight refuel while embarked on HMAS Ballarat . (Department of Defence, Commonwealth of Australia)

The Australian government has moved to strengthen fuel supplies to the Australian Defence Force (ADF) in line with requirements outlined in its Defence Strategic Review (DSR) to significantly enhance the management and supply of military fuel.

In recent weeks the Australian Department of Defence (DoD) has awarded two major contracts to local suppliers that enhance fuel deliveries to ADF assets across the country and enable Australia to recommence local production of JP-5 military aviation fuel, which is used by aircraft operating from naval vessels.

On 16 August UGL, a subsidiary of Australia-based CIMIC construction group, said it secured a AUD500 million (USD326 million) contract to provide fuel services to the ADF. A month earlier a much larger contract, worth AUD2.7 billion, was won by Melbourne-based Viva Energy Refining to refine and supply fuel to the ADF.

UGL said that under its new contract with the Australian DoD it will provide the ADF with advice, planning, supply management, operations, and maintenance for its defence fuel network. The contract starts in August and runs for six years, with options through to 2035.

“UGL will provide all operations and maintenance services throughout the defence fuel network nationally, as well as strategic asset advice and assurance services, and management and co-ordination of ADF's fuel supply requirements across Australia,” the company said.

In July a contract worth potentially AUD2.7 billion was awarded to Viva Energy, which will supply fuel to all ADF fuel installations in Australia and the Royal Malaysian Air Force Base Butterworth, Malaysia, at which Australian air platforms are stationed.