Lockheed Martin Australia was announced as the preferred tender last year for the geostationary earth orbit (GEO) satellite communications system, in a project that was to deliver Australia’s first sovereign-controlled satellite communication system over the Indo-Pacific ocean regions.

The project for a single orbit satellite with Lockheed Martin had been cancelled, the department of defence said in a statement on Monday.

“With the acceleration in space technologies and evolving threats in space since the project’s commencement, the department has assessed that a single orbit GEO-based satellite communications system would not meet strategic priorities,” the statement said.

It said Australia would instead prioritise a multi-orbit capability to increase resilience for the Australian defence force.

In a radio interview with the Australian Broadcasting Corporation, Prime Minister Anthony Albanese said while Australia’s defence budget was increasing, his government was prioritising its purchases.

When the Lockheed Martin project was announced last year it was said by authorities to be a “multibillion dollar” deal, but Monday’s statement said there was no specific value to the cancelled project.

However, the department said in the statement that it will still allocate A$9-12 billion (US$13.9 billion) for space capabilities.