Caltex Australia MD has firmed up fuel storage and expansion plans in South Australia in the next 25 years, the company has announced on Friday.

Caltex Australia MD and CEO Julian Segal today announced that Caltex has agreed on the key terms of a plan to boost the supply and reliability of fuel to South Australia and support the state's resources sector in its rapid growth over the next decade.

Mr Segal said the proposed 25-year deal with Terminals Pty Ltd would provide a near doubling of fuel storage capacity in the state and was the largest and latest in a series of commitments that Caltex has made to its supply chain as one of the nation's leading fuel suppliers and the only refiner-marketer listed on the Australian Securities Exchange.

"This is a demonstration of our commitment to ensuring greater fuel supply reliability for Adelaide and supply continuity for Caltex's growing list of commercial customers across the state," Mr Segal said.

"This project is part of Caltex's overall commitment to develop infrastructure and capability to meet Australia's growing transport, agricultural and mining fuel needs."

As part of the arrangements, Caltex will become a foundation customer of the new fuel storage terminal being built at Adelaide's Outer Harbor.

Terminals Pty Ltd is awaiting formal approval of a Development Application for stage one of the terminal, which will hold unleaded grades 91, 95 and 98 as well as diesel, biodiesel and ethanol.

Caltex National Manager Distribution Mike Raleigh said that the construction of the new facility was due to begin later this year, subject to regulatory approvals.

The $80 million first stage of the new facility is scheduled to open in 2013 and will initially provide 85 million litres of new storage capacity for South Australian fuel supply and have capability to eventually expand to 135 million litres.

"Caltex's current fuel capacity in Adelaide is limited by available tank capacity and by congestion at the existing Inner Harbour berth due to occupancy levels rapidly approaching their upper limits," Mr Raleigh said.

"These capacity constraints have been a major factor in a number of fuel shortages affecting Adelaide and the state of South Australia over the past few years.

"Moving to a new terminal, which will be serviced by a new Outer Harbor berth, will give South Australians much greater fuel supply certainty and also improve safety."

Caltex National Manager Lubricants & Direct Sales Phil Amos said the expansion of fuel storage capacity would also benefit the state's mining industry, which needs increased volumes of diesel as it continues a rapid expansion over the next decade.

"Caltex has seen a continued growth in its national marketing business, driven in part by increased sales of transport fuels which grew to 15.1 billion litres in 2010," Mr Amos said.

"Our increased commitment to fuel supply infrastructure in Adelaide follows an expansion in our storage capacity in Western Australia and Queensland where we are servicing the rapid growth in the mining sector.

"Caltex is committed to a truly national supply chain that meets the fuel needs of our customers wherever they are operating around Australia."