A new $1.5 billion port at Middle Arm that was pledged in the latest federal budget will play a key role in driving economic growth in the Northern Territory, Deputy Prime Minister Barnaby Joyce said while in Darwin on Tuesday as part of the federal election campaign.

Mr Joyce was at Stokes Hill Wharf to announce more details about the federal investment in the new facility at Middle Arm which will effectively become the city’s second port opposite the Darwin Port which was controversially leased to Chinese interests in 2015 for 99 years.

Mr Joyce said the new port at Middle Arm will become a world-leading industrial hub for gas processing, hydrogen and minerals processing and refinement which would be used to export more gas and minerals to southeast Asia.

“[This will] make Darwin not only a port, but a vital gateway, a real gateway to the wealth of southeast Asia,” he said.

“Our investment will deliver this, supporting port infrastructure, including a wharf and offloading facility, and dredging of the shipping channel.

“Assisting us in growing our gas exports, our critical mineral exports and development of hydrogen. It is making sure that this port becomes one of the premier ports in Australia.”

Mr Joyce was asked about the Darwin Port’s lease to Landbridge Group and said that Australia “still owns this port”.

He said Australia must become “stronger”.

“Our nation must become as strong as possible, as quickly as possible and what we’re doing here at Middle Arm with $1.5 billion just in this announcement, $1.5 billion dollars is going to be transformative, bringing in close to $16 billion worth of private investment,” he said.

Mr Joyce’s cabinet colleagues, including Defence Minister Peter Dutton and Finance Minister Simon Birmingham, have not ruled out the new port being used by Defence at some point.

The Gunner Government have been unwilling to call the new proposed facility at Middle Arm a “port”, with Deputy Chief Minister Nicole Manison going to great lengths to avoid using the word in a press conference last week, opting instead to repeatedly call it a “multi-use facility”.

Mr Joyce said developing the port at Middle Arm would help reduce Australia’s reliance on imports.

“Darwin is going to be one of the hubs of manufacturing in Australia,” he said.

The $1.5 billion funding commitment will include $440 million to build new logistics hubs at Alice Springs, Katherine and Tennant Creek and $300 million for low-emissions LNG and clean hydrogen production at the Middle Arm facility, which will also include carbon capture and storage infrastructure.

Another $200 million is earmarked to further develop the Middle Arm Sustainable Development Precinct, delivering a rail spur and new road network and $110 million to further upgrade and seal the Tanami Road.

The funding for these projects has not passed Parliament however, and will have to be legislated after the election.