Gary/Chicago airport announces key $9.8M CITGO agreement
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The Gary/Chicago International Airport announced Friday that it has reached a $9.8 million agreement with petroleum giant CITGO that will clear the way for a fuel pipeline to service the airport.
The deal provides the initial procurement funding for the design and layout of what the airport says is critical infrastructure for operations. That design work will begin by the end of the year, the airport said.
Construction on the pipeline could begin in the third quarter of 2025. When completed, the airport said, it will add needed fuel capacity to the airport’s growing general aviation, cargo service and executive air travel offerings while continuing to offer fuel at prices that are among the lowest in the region.
“This agreement paves the way for our airport to remain a competitive, sustainable airport for the foreseeable future, while also ensuring we will be able to service increasing numbers of aircraft,” said the airport’s executive director, Dan Vicari. “This is another critical step in our continued efforts to modernize our aviation infrastructure to remain competitive in the 21st Century.”
The agreement with CITGO comes about a month after the airport said it had secured about $24 million for improvements that included the development of a fuel service pipeline to service large-capacity storage tanks and the construction of an air cargo logistics apron.
Gary/Chicago Airport officials said then that the new apron would increase the airport’s operating capacity by eight cargo planes. Those improvements also include upgrades to the airport’s sewer systems.
The airport ranks third in Indiana in freight movement and is a hub for the United Parcel Service Inc. after signing a contract in 2020.
In total, the airport said in October it was using just more than $10 million in Community Project Funding grants. Of that pool, $2 million will go to sewer improvements to be done by the U.S. Army Corp of Engineers and the rest go to the logistics apron.
On top of that, the Federal Aviation Administration is contributing $4.33 million and the state of Indiana is allocating almost $10 million.
The airport said the improvements represent Phase 1 of a multi-stage plan to upgrade cargo offerings.
Also this year, the airport received approval from the FAA for a new, $16.4 million airport traffic control tower to replace the aging tower that was built in 1972.
Work is also underway on a new $12 million hangar, set to open next May, that will be leased to Valparaiso-based Wingtip Aviation.