The US Navy has awarded a $36m contract to construction company Mid Eastern Builders for the replacement of fuel storage tanks at Craney Island fuel terminal in Portsmouth, Virginia.

Craney Island fuel terminal is the navy’s largest fuel facility with 100 acres of above and below-ground fuel storage tanks used to support refuelling operations within the region.

Under the contract, the company will demolish 19 aging bulk storage tanks and construct six new tanks.

Work will be carried out in Portsmouth and is expected to be complete by August 2012.

The contract has been awarded by the Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia.