Stolthaven Australia has been awarded $33 million to build 126 million litres of diesel storage at its existing Mayfield tank farm, at the western end of the former BHP steelworks site on the Hunter River.

Stolthaven Australia's general manager Ben Serong said this would effectively double the facility's existing capacity of 130 million litres.

Separately, it was looking to begin handling petrol, with plans for another 40 million litres of capacity.

Mr Serong said the company, part of the Stolt-Nielsen shipping and logistics group, welcomed the grant and was pleased to support the government's fuel security plans.

He could not disclose the total cost but the government says the grants will cover up to half of each diesel project.

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The list of successful applicants shows the privately owned Park Fuels has been promised $17.13 million to add 60 million of diesel storage capacity in Newcastle and Port Kembla.

The National Party member for Lyne, David Gillespie, said half, or 30 million litres, of the extra Park Fuels capacity would be built in Newcastle.

If half of the Park Fuel grant came to Newcastle, the total would be $41.5 million.

The Newcastle Herald was unable to contact Park Fuels but Planning Department documents show it took over storage tanks on Greenleaf Road, Kooragang Island, in 2015, and had plans to expand them in 2018.

The Park Fuels facility was built by Eastern Nitrogen and later used by Ampol. It stands on Walsh Point, across the road from Orica, with a wharf on the northern arm of the river, facing Stockton.

The diesel storage program was announced in January by the Minister for Energy and Emissions Reduction, Angus Taylor. The funding had been provided in the previous federal budget, with Newcastle one of the places identified for attention. Projects are expected to start construction this year and be finished within three years.

The government and security experts had been concerned about the closures of Australia's fuel refineries and had pushed for greater storage capacity.

Mr Taylor said in January that the program would also back refineries with "a production payment that values the fuel security benefits provided by a sovereign refining capability".

The program also created a "minimum stockholding obligation for key transport fuels".

Port of Newcastle chief executive Craig Carmody welcomed the grants as enhancing jobs, fuel security and port trade.

Mr Carmody said the port had a third fuel terminal, at I Dyke wharf operated by Australian Terminals Operations Management or ATOM.

Newcastle also has a depot at Hannell Street, Wickham, recently rebranded from Caltex to Ampol.

Other grants included Qube Holdings with $33 million each for projects in Port Kembla and the Pilbara, with other successful applicants in the Northern Territory, Victoria and South Australia.

Dr Gillespie said diesel was vital to Australia's energy security.

"It keeps our economy running. It underpins our critical infrastructure, trucking sector and key industries, such as mining and agriculture," Dr Gillespie said.

"Through these grants, along with our support to keep Australia's refineries operating until at least mid-2027, the Government is making sure Australian families and industry can access the fuel they need, when they need it."

The full list of successful applicants

Qube Holdings Limited Port Kembla $33,000,000

Stolthaven Newcastle $33,000,000

Park Fuels: Port Kembla and Newcastle $17,130,000NSW

Project Caymus NT $30,000,000

Quantem's Pelican Point at Adelaide $28,006,382

Viva Energy Geelong $33,300,000

Ampol Newport Victoria $26,973,834

Coogee Chemicals Kwinana WA $25,505,840

Qube Holdings Lumsden Point, Pilbara $33,000,000

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