SYDNEY (Reuters) – Australia has canceled a multibillion-dollar military satellite project to be built by Lockheed Martin, according to a statement on Monday, with the defense ministry saying the military will now focus its efforts on the development of a multi-orbit communications system.

Lockheed Martin Australia was last year named as the preferred bidder for the geostationary orbit (GEO) satellite communications system, as part of a project to establish the world’s first sovereignly controlled satellite communications system. Australia in the Indo-Pacific ocean regions.

“With the acceleration of space technologies and the evolution of threats in space since the project’s inception, the Department of Defense believed that a single-orbit satellite communications system based on geostationary orbit would not meet not strategic priorities,” the statement said.

The ministry adds that Australia will focus on developing a multi-orbit capability to strengthen the resilience of its defense forces.

In an interview with the Australian Broadcasting Corporation, Prime Minister Anthony Albanese stressed that although the defense budget is increasing, his government wants to focus on essential acquisitions as a priority.

The press release did not specify the amount of the canceled project, which was described last year by the authorities as worth “several billion dollars”.

The Australian Department of Defense has, however, confirmed that it will continue to allocate 9 to 12 billion Australian dollars (5.45 to 7.26 billion euros) for space capabilities.

(Reporting by Kirsty Needham in Sydney; Noémie Naudin; editing by Augustin Turpin)

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