Deal allows Manus to get 550,000 litres of fuel

By PETER ESILA
MANUS will get 550,000 litres of fuel every month to cover the shortage of fuel in the province, thanks to a local entrepreneur and the Defence Force.
SPG Petroleum owner Gerard Steven has entered into a nine-year commercial lease agreement with PNG Defence Force under its commercial support programme which will see the ExxonMobil tanker Lukianos carry fuel to Manus.
This is a result of months of work between Mobil Oil New Guinea Limited – an affiliate of ExxonMobil – SPG Petroleum and the Defence Force.
Lukianos made its maiden vorage to Tarangau Naval Base in Lombrum on October 11.
Steven said the arrangement was “a game changer for the province”.
“Currently on the island of Manus, we have a big problem with fuel supply,” he said.
“We have been having this power issue due to shortage of fuel.
“We have current road and airport construction work, we have Australian aid programmes here, we have some other development work but the problem that is affecting businesses in Manus is fuel. Manus operates on a generator.
“Frequent power outages over the years have become the norm in the province.
“Government and businesshouses have been considerably affected.”
Steven said the Defence Force’s Tarangau Naval Base had fuel facilities that were built in 2014 to Australian standards for the regional asylum seeker processing centre.
He thanked the Defence Force for enabling this arrangement, saying ExxonMobil’s affiliate, Mobile Oil New Guinea, has a partnership with SPG Petroleum for nine years.
“The low-key arrival and berthing of ExxonMobil-chartered bulk fuel tanker Lukianos is a welcome sight as expressed by various business owners and the people of Manus,” Steven said.
“It is also the first of its kind for a specified fuel tanker to berth and discharge in Manus. Manus and its people deserved to be provided with a service of this magnitude.”
Mobil Oil New Guinea general-manager Patrick Tang said Mobil was happy to work with SPG Petroleum to provide a reliable supply of high-quality fuel to Manus.
“The recent successful delivery of fuel from the marine tanker Lukianos was the culmination of months of work between Mobil, SPG Petroleum and the PNGDF who own the Lombrum wharf facilities, to ensure the first cargo was safely discharged,” he said. Tang said Lukianos was a coastal tanker which delivered fuel from Mobil’s terminal in Lae to customers across the region, including Bialla, Kavieng, Kimbe, Madang and Oro Bay.
It is expected the tanker will deliver fuel to Lombrum Manus every month, depending on demand.
SPG Petroleum will retail the fuel locally in Manus. Mobil Oil New Guinea Ltd is an affiliate of ExxonMobil and has been operating in PNG since 1922.