PNG Has a Business Opportunity to fix Australia's Energy Security Problem : O'Neill

Papua New Guinea is uniquely placed to help solve Australia’s fuel supply chain challenges with our geographic location and trusted partner status, and to generate much needed revenue for the country.

Leader of the People’s National Congress Party, Hon. Peter O’Neill, CMG, MP, has made the call after Australia’s federal energy Minister Angus Taylor’s decision that Australia would be storing 19 days of fuel coverage in the USA to reduce the risks of fuel shortages in Australia especially in times of crises and global tensions.

“Papua New Guinea offers a complimentary solution for the purchase and storage of fuel and refined product that is less than five days steaming by tanker to Sydney or Brisbane,” Mr. O’Neill said.

“Fuel stored in Papua New Guinea is also in closer proximity to Asian markets if it needs to be on-sold.

“The current option of storage in the United States offers a secure location, but it is still open to being compromised in the event of conflict and supply chain blockages.

“This would not be the case with a permanent and long-term facility in Papua New Guinea.

“Australia would do well to consider reducing its risks by storing some of its 19 day supply in its nearest neighbor Papua New Guinea.

“We already have the base facilities that can be expanded, and we produce oil that can be purchased by Australia.

“The Coronavirus pandemic, and further potential risks of international conflict have highlighted the need for Australia to further secure national fuel supply channels.

“With Australia having 56 days of fuel stored in the country, increasing tension in the Middle East has placed increasing pressure on domestic stocks.”

The Australian Government is asking for input from industry for better options, and Mr. O’Neill said now is the time for the PNG Government to step up and pursue business opportunities for the country.

“This is a prime business opportunity for PNG to generate income in expanded storage facilities, and play a stronger role in the energy sector in the Asia-Pacific region.

“The Government must change its focus away from aid and loans, and look to business generation and jobs creation.

“As a country we need to focus less on handouts, and work closer with business to generate investment opportunities and jobs.

“This investment would also see our country be a more active partner in helping Australia deal with the challenges it faces, while also benefiting our own economy and our people.”

Statement

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