US Invests Nearly US$400 Million in Major Fuel Storage Project for PNG
PORT MORESBY – In a significant boost to Papua New Guinea’s (PNG) infrastructure, the United States has awarded a contract valued at approximately US$400 million (around K1.6 billion) for the development of a major fuel storage facility in Port Moresby.
US Ambassador Ann Marie Yastishock announced that the investment was initiated in response to a formal request from the PNG Government. She highlighted that the facility would not only meet the country's fuel storage demands but also enhance the diversity of fuel options available in the market.
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| US Invests Nearly US$400 Million in Major Fuel Storage Project for PNG [AI Graphics of Fuel Storage] |
“This project reflects the strength of our bilateral relationship and is the result of ongoing dialogue and collaboration with PNG,” Yastishock said.
The facility is designed to hold more than 1.6 million barrels—or about 264 million litres—of fuel, significantly boosting PNG’s energy security. The contract has been awarded to the US-based DGCI Corporation, a company with a proven track record of constructing and managing large-scale fuel storage installations across Africa, South America, the Middle East, and Central Asia. According to the US Embassy, DGCI focuses on delivering innovative, mission-critical solutions through trusted partnerships that drive local economic development.
Ambassador Yastishock said this investment aligns with the dual celebration of PNG’s 50th year of independence and the 50th anniversary of diplomatic relations between the United States and Papua New Guinea.
“This investment reaffirms our enduring partnership, aimed at ensuring a Pacific region that remains peaceful, secure, prosperous, and resilient,” she added. “The bond between our two nations is built on shared history, common values, and a collective vision for the future.”
She also pointed to the Defense Cooperation Agreement, which officially came into force in 2023, as a cornerstone for ongoing security collaboration between the two countries. Since its signing, the US has committed to a series of initiatives, including training programs, bilateral military exercises, and enhanced engagement with the Papua New Guinea Defence Force (PNGDF).
Last week, Admiral Samuel Paparo, Commander of the US Indo-Pacific Command, personally briefed Deputy Prime Minister John Rosso and Foreign Minister Justin Tkatchenko on the awarding of the contract and discussed details of the project.
The US Embassy, Yastishock assured, will maintain clear and transparent communication with the PNG Government to ensure steady updates throughout the construction process.
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