Annandale Distillery, located on the northern edge of the town, has lodged a planning application including a bonded warehouse with an adjoining dry goods store and bottling plant.
Joint-owners Professor David Thomson and Teresa Church have invested millions of pounds to carefully restore the distillery, originally built in the Victorian era.
They have launched a peated single malt whisky called Man o’ Sword in honour of King Robert the Bruce and an unpeated single malt Man o’ Words in tribute to poet Robert Burns.
Professor Thomson explained that their original restored twin bonded warehouses were being used to accommodate 2000 barrels.
A further 2000 barrels of maturing whisky were currently stored at Creetown and Leith.
The new building would provide storage capacity to increase by a further 20,000 barrels, potentially satisfying the needs of the distillery far into the future.
Professor Thomson said: “I’m a great believer in the fact that single malt Scotch whisky should be matured in the same microclimate as the distillery.
“The atmosphere of Annandale in our case will surround the barrels as they are maturing.
“The late Dr Jim Swan, a leading whisky expert who was our adviser, stated that the current bonded warehouse at Annandale Distillery was a near perfect place for maturing whisky.”
Located on acquired land adjoining the existing site, the proposed specially designed single-storey building would be in a secure area screened by woodland.
The development would reduce the distillery’s carbon footprint by reducing the need to transport barrels and add around three jobs to the current 20-strong workforce.