✈️ Okaloosa County approved a $4M expansion of the Destin–Fort Walton Beach Airport fuel farm.
⛽ The project will nearly double Jet-A storage from 130K to 250K gallons.
📈 Driven by 20% passenger growth, the expansion is expected to finish by summer 2026.
SHALIMAR — The Okaloosa County Commission voted unanimously Tuesday to award a $4,028,051.14 construction contract to MDM Services, Inc. for a long-planned expansion of the Destin–Fort Walton Beach Airport (VPS) fuel farm.
Airport Director Tracy Stage told commissioners the project is critical to keeping up with demand as the airport continues to attract more mainline carriers and larger aircraft.
“This past summer season, we had one day where we actually uplifted 90,000 gallons of Jet-A fuel,” Stage said. “That’s 11 semi-trucks at 8,000 gallons apiece. It’s a tremendous amount of movement.”
The project will add four vertical above-ground tanks, each with 30,000 gallons of capacity, raising total Jet-A storage from 130,000 gallons to 250,000 gallons. The added capacity nearly doubles the airport’s supply, allowing VPS to better withstand delivery delays and peak weekend surges.
The expansion also includes pump replacements and integration into the airport’s fuel management system, which monitors real-time supply levels. The construction timeline is 300 days, with substantial completion expected in 270 days.
Stage emphasized that the project will be paid for with a mix of Federal Aviation Administration (FAA) Airport Infrastructure Grants and Florida Department of Transportation (FDOT) funding, combined with previously budgeted local airport funds.
The FAA grant, valued at $3.54 million, covers 90 percent of eligible costs. FDOT will contribute nearly $487,000 on a 50/50 split for repair and maintenance portions. The local match of roughly $597,000 has already been set aside.
Commissioner Carolyn Ketchel noted the importance of noting the county’s debt-free status.
“I wanted to make sure we brought that out publicly, because that’s a lot of money,” Ketchel said. “I’m very proud of the fact that we have a debt-free airport system — all three. That’s unusual. A lot of airports have debt that’s very, very competitive.”
Since 2018, VPS has added service from Southwest, Sun Country, and Avelo Airlines, in addition to Allegiant’s earlier expansion. Passenger operations grew by 20% this past summer, straining fuel supply.
Stage noted that while competitors in Pensacola and Panama City can draw from seaport terminals, VPS relies entirely on over-the-road tanker deliveries. A shortage of drivers and refinery disruptions have amplified the need for greater on-site storage.
The expansion is expected to be complete by summer 2026, in time for peak travel season.
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