SYDNEY, March 27 (Xinhua) -- Papua New Guinea (PNG) Prime Minister James Marape on Wednesday expressed the government's determination to diversify fuel sources, as Puma Energy, the primary fuel supplier in the Pacific island country, is taking steps to reduce operations with limited stock.
"We cannot continue to depend on one source of fuel for too long, as we have been doing with Puma Energies," said the prime minister.
The announcement came after Marape returned from a two-day visit to Singapore, where discussions were held with Puma Energy and various other global traders to open up the market and properly secure PNG's energy needs.
"The government of Papua New Guinea remains committed to safeguarding the nation's energy future through strategic diversification and international cooperation, ensuring a reliable and sustainable fuel supply for our people," said the prime minister,
Marape also revealed plans to collaborate with national entities such as Kumul Petroleum Holdings Limited (KPHL) and the Mineral Resources Development Company to guarantee a stable fuel supply for PNG.
KPHL has been tasked with looking into the downstream processing of fuel for the long term, while in the medium term, it will be nominated to partner with any global company with an interest in refining and bunkering fuel.
The Singapore-based multinational Puma Energy purchased downstream operations from InterOil, marking its entry into the PNG market in 2014.
According to Australian Financial Review, the acquired assets include the Napa Napa refinery in Port Moresby which processes about 28,000 barrels a day, as well as 52 service stations, and 30 fuel depots, terminals and aviation sites.
In mid-February this year, the PNG branch of Puma Energy revealed that it was in the process of reducing operations and would aim to re-negotiate contracts with customers on new terms for lower volumes. ■
