Kumul Petroleum Holdings Limited (KPHL) has organised additional fuel shipments, including crucial Jet A1 supplies, to alleviate the ongoing fuel shortages affecting the country.
In a recent statement, KPHL Managing Director Wapu Sonk acknowledged the challenges faced by current fuel importers in meeting the nation’s demand, particularly for aviation fuel.
“We are aware that current fuel importers are unable to meet the demand for fuel, particularly the Jet A1 used by the aviation industry, and once again we have stepped in to address this shortage,” Sonk said.
This is not the first time KPHL has intervened to prevent a fuel crisis.
During April, the state-owned company organised a fuel tanker shipment that averted a previous supply disruption caused by Puma Energy’s withdrawal from supplying fuel to PNG.
Building on that earlier initiative, KPHL has now organised two separate fuel shipments to bolster supplies:
- 38 Million Litres of Diesel & 8 Million Litres of Jet A1: Purchased from Puma Energy in Singapore, this shipment is arriving on the tanker Nord Miyabi and expected to discharge its cargo in Port Moresby around 21 May 2024. The fuel will be sold to Puma Energy’s PNG operations.
- 8 Million Litres of Jet A1: Purchased from ExxonMobil, this shipment is expected to arrive in the country on June 1st or 2nd.
According to Sonk, the total imports should cover market demand for at least two months.
Sonk emphasised KPHL’s commitment to ensuring a reliable and constant fuel supply until the country’s supply chain stabilises.
“We are aware that until the country’s fuel supply chain arrangements stabilise, KPHL will be actively involved in the import and marketing of fuel for as long as it takes to ensure that there is a reliable and constant supply to the country to ensure continuity of fuel supply to essential businesses, industry and the public.”
KPHL has reached an agreement with Puma Energy to acquire fuel from them and utilise their infrastructure for distribution within PNG in the near term.
“This arrangement will ensure fuel and energy security for the country, especially with regard to Jet A1, for the foreseeable future,” Sonk stated.
Looking ahead, Sonk revealed that KPHL is also working on a medium to long-term fuel supply solution as requested by the National Executive Council (NEC) and in line with its mandate to ensure a fair and level playing field for the energy industry, as well as reduce the country’s demand for US dollars for fuel imports.
As PNG continues to grapple with fuel shortages, KPHL’s proactive measures aim to provide much-needed relief and ensure the nation’s energy security until a more permanent solution can be implemented.
