PM starts talks with traders to open supply

PRIME Minister James Marape has begun talks with other global fuel traders to open up the fuel supply market and secure the country’s energy supply need.
“We are in initial discussions with reputable global fuel traders and suppliers who are in the business of refining fuel, bunkering it, and retail distribution,” he said.
“We want to open the market and remove monopoly,” he said referring to Puma Energy’s position in the PNG market.
“The Government’s role is to ensure that the country gets the correct price, quality and reliability to avoid the predicament we are experiencing with Puma Energy.
“We have the Papua LNG Project, P’nyang LNG Project, and Pasca Gas coming up.
“Condensate from these projects will be refined in Papua New Guinea for local fuel consumption under domestic market obligation, and exported.”
He said the National Executive Council (NEC) had tasked the Kumul Petroleum Holdings Limited (KPHL) to look into downstream processing of fuel in the country as a solution in the long term.
In the medium term, KPHL will be the State nominee to partner any global fuel trader interested in refining and bunkering fuel in the PNG.
All proposals will be assessed on their merit by the Department of Petroleum as the regulator.
Marape met with Ampol – the largest supplier of fuel in Australia – in Brisbane, Queensland, before traveling to Singapore to meet with companies Sinopec of Singapore and Petro China.
Ampol is already supplying fuel to mining companies and Puma Energy.
Marape will also meet with national supplier Puma Energy to discuss its long-term plan for business in Papua New Guinea.
Marape thanked ExxonMobil for currently bringing in fuel supplies for storage and distribution by Puma Energy under the national emergency arrangements.