Key facts
- Australia's Northern Territory government is urging Canberra to include Rio Tinto's Gove fuel infrastructure in the national A$3.2bn fuel security reserve.
- The Gove site could provide 220 million liters (1.38 million barrels) of fuel storage capacity.
- Chief minister Lia Finocchiaro wrote to Prime Minister Anthony Albanese on July 31, seeking federal funding for tank refurbishment.
- Rio Tinto is phasing out its Gove bauxite operations, with closure expected by the end of the decade.
- The federal government plans a 1 billion liter fuel reserve, with Gove potentially contributing 22% of that capacity.
- The Gove facility includes seven fuel-compliant storage tanks and a deep-water port.
Australia's Northern Territory government is advocating for the inclusion of Rio Tinto's fuel storage facilities at Gove into the nation's proposed A$3.2 billion fuel security reserve. The NT government, led by Chief Minister Lia Finocchiaro, along with the Gumatj and Rirratjingu Aboriginal corporations, has formally requested federal funding to refurbish the tanks. These facilities, which could provide 220 million liters of storage, are part of Rio Tinto's Gove bauxite operations that are slated for closure towards the end of the decade.
The federal government's plan includes a 1 billion liter reserve for diesel and jet fuel, and the Gove site's capacity could fulfill approximately 22% of this target. The infrastructure comprises seven compliant storage tanks and a deep-water port, suitable for receiving and distributing bulk fuel. The NT government has indicated that a decision regarding the future of these assets must be made by mid-2027.
A Rio Tinto asset memorandum details the fuel infrastructure, including a tanker wharf for unloading oil products into a harbour tank farm and a connected light-fuel tank farm. These tanks are identified as having potential for future petroleum storage. Finocchiaro stated that retaining the tanks would bolster Australia's fuel security and support local jobs and economic transition in the East Arnhem Land region.
However, Gove's remote location, far from major fuel consumption centers, raises potential concerns about distribution costs and response times during supply disruptions. Last year, Gove imported approximately 121,000 tonnes of gasoil, 11,000 tonnes of gasoline, and 5,000 tonnes of jet fuel. The Gove facilities are part of a larger industrial precinct being assessed for post-mining uses by traditional owners, Rio Tinto, and the NT government.
Rio Tinto has not yet commented on potential discussions with the federal government or other parties regarding the Gove fuel assets. As of July 28, Australia held sufficient stocks for 39 days of gasoil consumption, 34 days of jet fuel, and 43 days of gasoline.