DLA Energy and Australia forge new fuel support deal to bolster Pacific readiness

The Defense Logistics Agency Energy has entered a new arrangement with Australia’s Fuel Capability Branch that will allow U.S.-owned aviation fuel to be stored and handled at Royal Australian Air Force bases, a move the agency says will bolster logistics and allied readiness across the Pacific. The agreement took effect Aug. 1, 2026, and was signed by DLA Energy Commander Rear Adm. George Bresnihan and Australian Brigadier Mark Baldock, director general of Fuel Capabilities.

Built to operate alongside an existing U.S.-Australia fuel exchange agreement, the arrangement is intended to modernize processes between the partners, expand access to critical fuel stocks, and deepen operational collaboration. DLA Energy characterized the step as advancing theater campaign priorities at a time of renewed focus on posture and resilience in the region.

“This fuel implementing arrangement, established under Acquisition and Cross-Service Agreement authority, is the culmination of five years of successful bilateral collaboration,” said Michael Holgate, who leads the DLA Energy International Agreements Team within Bulk Petroleum Supply Chain Services. “ACSAs are utilized by the DoW globally to acquire or provide logistics support, supplies and services directly to or from foreign partner nations.”

Day-to-day administration will be handled by DLA Energy’s International Agreements Team in Honolulu, working with DLA Energy Pacific South-West in Guam. The team oversees dozens of similar long-term fuel arrangements worldwide in coordination with regional offices, according to the agency.

“To have been on the ground in uniform when this project was just an operational concept, and now to see it fully realized at the strategic level, is profoundly rewarding,” said John Reed, DLA Energy Pacific operations branch chief. “This arrangement is more than just a logistical milestone; it’s a critical enabler for our forces and a testament to the ironclad partnership between the U.S. and Australia. We are fundamentally transforming our posture and resilience in the Pacific.”

DLA Energy said the initiative underscores its core mission of ensuring U.S. forces have reliable fuel supplies for coalition exercises, humanitarian operations, and strategic missions worldwide by tailoring support to evolving requirements.

The agency did not specify which RAAF bases will store the fuel, the volumes involved, or timelines for initial deliveries beyond the effective date.

The announcement noted that generative AI assisted in drafting the release, which officials said was subsequently researched, proofread, and revised by agency personnel.