ASPI’s John Coyne calls for bulk fuel storage at Tindal to reap benefits of expansion

Coyne argues that Australia will need to have a deep look into its jet fuel security to ensure that all the benefits of investment can be reached as well as to ensure capability should the northern airbase need to be utilised in conflict, increased operations for exercises, or humanitarian response, also noting that this is likely not lost among strategists in China. 

A vast majority of Australia’s northern jet fuel is consumed by airlines, with the commercial sector consuming 125 million litres per year and the amount used by the ADF approximately 30 million litres. However, during military exercises consumption rates can rise rapidly even if planned in advance, causing pressure on fuel supplies as it is even before operational capacity grows at the Tindal base. 

The issue with supply

Australia's jet fuel supplies are sourced from Singapore with ships travelling from ports in Singapore and arriving in Darwin Port, leased to the Chinese-owned Landbridge Group. The fuel is then transferred to the Vopak Terminal in Darwin where a vast majority of northern Australia's jet fuel is stored. The fuel for the RAAF Base Tindal is then transported 300 kilometres to Katherine by privately owned and operated trucks.

Coyne expands on this issue in his article for The Strategist, stating, "Even in peacetime, jet fuel from Singapore is subject to availability and weather conditions. Despite this vulnerability, there’s no legislated or mandated requirement for a strategic reserve of jet fuel to be held in northern Australia.

"Northern Australia has only limited capacity for bulk storage of jet fuel. The storage capacity at Darwin’s Vopak facility was built on a 1996 assessment of fuel requirements. Resupply to Tindal is limited by the availability of trucks and drivers and there are none waiting on standby just in case the ADF needs more fuel."

Too reliant on the market

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Coyne states that Australia cannot rely on the market to ensure fuel supply to northern Australia as needs arise in the future. 

He states, "Defence’s approach to jet fuel in Australia’s north is underpinned by assumptions that the market will continue to ensure its availability and that there’s no requirement to invest in other fuel infrastructure or pay extra for surge capacity or reserves. However, market forces will not support the level of investment needed to develop strategic fuel infrastructure — especially if Defence isn’t willing to pay more for its fuel."

 The answer to jet fuel security

Coyne further than bring up the issue proposes a solution as well as issues that may arise in its implementation.

"Defence’s answer to this problem, and the increasing fuel demands of larger aircraft, is to increase the amount of storage at Tindal. Increased jet-fuel storage would allow Defence to store enough in reserve to support short periods of high fuel consumption like those experienced during large-scale multilateral exercises such as Pitch Black," he says.

"But the decision to invest in bulk fuel storage at Tindal will bring new challenges. Jet fuel has a very limited shelf life that requires careful stock management, as well as complex testing regimes."

Call for more Action from federal government.

Coyne concludes with a call on the Australian government to do more to assist Defence to resolve these issues.

"This is clearly not an issue for Defence to resolve on its own, but one that requires the federal government to think in terms of national security through nation-building," Coyne says.

"Any discussion on supply chains and resilience, especially with respect to fuel, quickly comes down to who will cover the costs. And that’s why, in a time of increasing strategic uncertainty, the government needs to consider stepping up to make the nation-building investments in Australia’s north that are required for our national security." 

Tindal expansion welcomed by ASPI

In an earlier article by Peter Jennings, the move to expand Tindal was lauded as a "giant strategic step forward" delivering a firmer deterrent posture and growing ties with the US.

Jennings argues, "A stronger defence posture in our north could also be the basis for a greater Australian leadership role in the region, where we can work with our key south-east Asian partners — Indonesia, Singapore, Malaysia and hopefully Vietnam — in a shared strengthening of the region.

"Especially valuable is that the enhancements at RAAF Base Tindal are planned to be finished by 2027. In contrast, on current plans, the first of our Attack Class submarines will still be nine years from entering service by then.

"The importance of the new submarines should not be underestimated, but the security situation in the region is changing so fast that Australia needs to urgently boost its military strike power and strengthen its deterrence capability. There is no better or quicker way to do this than through air power and the US alliance."

Jennings cites a sharpening strategic competition in the region between the US and China and identifies three reasons for increasing co-operation in the north with the US Marine Corps:

1.  It adds a new dimension of closer co-operation with the US, deepening American engagement in, and commitment to, Australian security increasing deterrence power for Australia.
2. Co-operation will modernise the alliance and make it better suited to handle emerging threats. The northern focus will be on having the ability to rapidly disperse and deploy forces over large distances, extend the range of combat hitting power and bring our military forces into more effective high-technology co-operation.
3. Third, enhanced northern co-operation is a strong signal of American and Australian interest in the security of south-east Asia.

Your thoughts

Based on Coyne's commentary, it is imperative for Australia to begin implementing changes to ensure jet fuel supply by building storage and supply chain capacity in order to truly reap the benefits raised by Jennings, including building resilience in the face of expanding Chinese interests.

Get involved with the discussion and let us know your thoughts on Australia's future role and position in the Indo-Pacific and what you would like to see from Australia's political leaders in terms of shaking up the nation's approach to our regional partners.

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