MITSUBISHI subsidiary Petro Diamond Australia is about to begin seeking tenders for work on the $110 million Port Bonython Fuel Terminal, with the developer saying it would seek to maximise local participation in the project.

The diesel import terminal, located near Whyalla in South Australia, will be used by the company to launch a fuel import, sales and distribution business.

The terminal will use existing South Australian government-owned jetty infrastructure for the unloading of imported fuel ships via a new 5.3 kilometre pipeline.

A new fuel storage tank farm with three tanks, distribution and load out gantry for trucks will also be built on the 73.6 hectares of land at Port Bonython.

Petro Diamond Australia acquired Port Bonython Fuels from Senex Energy in 2012, thereafter inviting Coogee Chemicals to serve as operating partner of the terminal.

Company chief executive Yasuyuki Suzuki said the procurement strategy would be based on a select tender process by invitation, with tendering to start in the final quarter of 2014.

“Work packages will range in value between $8 million and $20 million,” he said. “Construction and commissioning work will take about 18 months.”

All tenders are to be finalised by mid 2015, with the terminal planned to be operational by the second quarter of 2016.