Kumul Petroleum Holdings Limited Intervenes to Address Fuel Shortages in Papua New Guinea
Port Moresby, May 21, 2024 – Kumul Petroleum Holdings Limited (KPHL) has taken decisive action to mitigate the ongoing fuel shortages affecting Papua New Guinea. KPHL Managing Director Wapu Sonk announced that the company is stepping in to ensure a steady supply of fuel, particularly the aviation-essential Jet A1, amidst the inability of current fuel importers to meet demand.
In response to a directive from the National Executive Council, KPHL is coordinating fuel shipments to sustain the country's needs while working on a long-term solution. In April, KPHL successfully arranged a tanker shipment to prevent a crisis following Puma Energy's withdrawal from fuel supply.
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| Kumul Petroleum Holdings Limited Intervenes to Address Fuel Shortages in Papua New Guinea |
The latest initiative includes two significant shipments: the first, consisting of approximately 38 million litres of diesel and 8 million litres of Jet A1, was procured from Puma in Singapore and is expected to have been discharged by the tanker Nord Miyabi in Port Moresby yesterday. The second shipment, containing 8 million litres of Jet A1 from ExxonMobil, is anticipated to arrive on June 2. Together, these shipments are projected to fulfill the country's fuel requirements for the next two months.
Amidst these efforts, National Capital District Governor Powes Parkop has urged the government to expedite an agreement with China that would enable direct currency trade, bypassing the need for US dollar conversions, to ease the fuel crisis. Parkop identified limited access to foreign currency, especially US dollars, as the root cause of the shortage.
To further address the issue, Parkop proposed that major corporations such as ExxonMobil, Ok Tedi, Lihir Gold, and New Britain Oil Palm Ltd use their offshore accounts to purchase and supply crude oil to Puma, leveraging their substantial US dollar reserves. He also suggested the possibility of these entities transferring their accounts onshore to bolster the nation's foreign currency reserves.
“These companies have the capacity to deliver the fuel we need,” Parkop stated. “Bringing their accounts onshore will ensure we have sufficient foreign currency, particularly US dollars, which is crucial for our fuel supply chain.”
As KPHL continues its interventions, the government is exploring these strategic options to secure a stable fuel supply and prevent future shortages.
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