The Australian Government will provide up to AUD 260 million in competitive grants to support the construction of an additional 780 megalitres of diesel storage in Australia. The program will run over 3 years to 2023–24. The 10 projects are expected to start construction in mid-2021 and be completed within 3 years.
Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.
This is part of the Fuel Security Package, whereby the Government will enhance Australia's security and bolster local industry, whilst creating additional employment. The combined market and regulatory framework will bring in three key elements:
- investing AUD 260 million in a competitive grants program to build an additional 780 ML of onshore diesel storage
- creating a minimum stockholding obligation for key transport fuels
- backing the refining sector by entering into a detailed market design process for a refinery production payment.