NATO-funded infrastructure expansion announced in Iceland

Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir, Kjartan Már Kjartansson, mayor of Reykjanesbær, and Halldór K. Hermannsson, director of Reykjanes Harbour, today signed a declaration of intent regarding planned infrastructure development in Helguvík on the Reykjanes peninsula in the south west of Iceland. The signing coincides with the official visit of NATO General Secretary Mark Rutte.

The project involves the expansion of the North Atlantic Treaty Organization’s fuel depot in Helguvík, which includes the construction of a new 390-meter quay and storage facilities for 25 thousand cubic meters of marine fuel. This is a joint project between the Icelandic government and NATO, which is financing the construction. The alliance’s investment is estimated to amount to up to ten billion króna ($67 million).

“It is important to strengthen defence infrastructure and capability here in Iceland so we can better ensure support for alliance vessels that conduct surveillance and operations in the North Atlantic. This facility will also be useful for us and will contribute to increased security with respect to fuel supplies and harbour facilities,” says Foreign Minister Þorgerður Katrín Gunnarsdóttir.

Preparatory work and design for the proposed structures in Helguvík is currently underway, and they may also be used for civilian purposes. Construction is scheduled to begin in late 2026 and be completed in 2029.

“Reykjanesbær and Reykjanes Harbour welcome the planned infrastructure development by NATO in Helguvík, which is intended to increase security in the North Atlantic,” says Kjartan Már Kjartansson, mayor of Reykjanesbær.