Mitsubishi Corporation will build the long-awaited Port Bonython Fuel Terminal Project in the upper Spencer Gulf.

The $110 million project, first approved by the State Government in 2009, has been through a few corporate hands since it was first proposed as a means of shoring up diesel fuel supplies in SA.

It was developed and owned by Stuart Petroleum Pty Ltd before being acquired by Senex Energy Pty Ltd in 2011.

In January this year, Senex offloaded the project to Mitsubishi Corporation.

The Port Bonython project was a natural fit with Mitsubishi Corporation’s petroleum products trading strategy, Senex managing director Ian Davies said at the time.

“Mitsubishi’s involvement will ensure its success and contribute to the South Australian economy,” he said.

Stockpiles of diesel in SA are limited.

The Port Bonython project to construct diesel fuel storage and distribution facilities will significantly increase fuel supplies, particularly within the northern and western regions of SA.

The final design and construction phase of the terminal will commence this quarter, with the commencement of commercial operation targeted around the 2nd quarter of 2016.

Treasurer Tom Koutsantonis said Mitsubishi Corporation’s investment was a vote of confidence in South Australia.

“We are seeing record export levels in South Australia and anticipated growth in our mineral resources and energy, transport and agriculture sectors will mean additional demands for fuel,” Mr Koutsantonis said.

“This facility, which is expected to be operational by mid 2016, will boost fuel security in South Australia, providing a competitive and reliable supply and helping underpin future economic growth.

“A secure diesel supply is vital and this facility will be part of our arsenal to help grow the State’s economy.”

Artist’s impression of the project