Channel Infrastructure has signed a 15-year contract with BP for significant additional jet and diesel fuel storage at its Marsden Point Energy Precinct.
The agreement is expected to generate around $130 million in revenue over its initial term, before Producer Price Index (PPI) adjustments, with revenue commencing in the third quarter of 2028.
Channel expects to invest between $65m and $70m from 2026 to 2028 to repurpose existing tanks and associated infrastructure for the additional storage capacity.
The investment will be funded through existing debt facilities, with work expected to begin in September and completion targeted for the third quarter of 2028.
The deal follows a 40% increase in Channel’s contracted in-service storage capacity at Marsden Point over the past three months.
Channel says the expansion, along with the new bp contract and a pipeline of potential growth opportunities, will require additional investment in its operations.
The company expects to increase annual operating expenditure by between $700,000 and $900,000 to support its import terminal operations and delivery of future growth projects.
