Australia plans to set up US-funded military fuel reserve amid China tensions

Australia will set up a US-funded military fuel reserve in the city of Darwin, authorities said on Thursday. The move is seen as a show of stronger co-operation between the allies who both face increasing tension with China.

The chief minister of Australia’s Northern Territory, of which Darwin is the capital, confirmed the plan was part of a wider agreement to boost defense ties following high-level talks in Washington.

“It will be thumpingly large, but the US government will be spending the money to see it built,” said a spokeswoman for the chief minister, Michael Gunner. The deal “recognizes the Territory as one of the nation’s most strategically important defense locations,” the spokeswoman added.

Darwin has hosted a contingent of 1,250 US Marines since 2011, under former President Barack Obama’s pivot to Asia, Reuters said.