PNG Government Eyes Napa Napa Refinery Purchase

The Papua New Guinea Government is considering taking control of the Napa Napa oil refinery in Port Moresby as part of a long-term plan to secure the nation’s fuel supply and cushion the impact of global price swings.

Rural and Economic Development Minister Joseph Lelang confirmed that the move was being explored following ongoing fuel supply challenges, with the State viewing ownership as a strategic safeguard.

At the same time, the United States Embassy in Port Moresby revealed that US-based DGCI Corporation was in discussions with Transfigura, the parent company of Puma Energy, over a possible takeover of the Napa Napa facility.

A spokesperson from the US mission said the proposed transaction remained under review, stressing that both parties were carrying out due diligence and preferred the process to proceed without outside interference.

The embassy indicated that if negotiations were successful, the deal could strengthen fuel storage capacity in Port Moresby, improving supply reliability for the country.

Meanwhile, the United States has already committed about K2 billion towards a separate fuel storage development in PNG, which is being undertaken by DGCI near the refinery site at Papa in Central Province.

According to the developer, the storage facility is expected to hold more than 1.6 million barrels, or about 264 million litres, of fuel, enhancing both economic and strategic capabilities for the country.

DGCI chairman Aziz Doraney said the project would play a key role in strengthening PNG’s energy security while deepening ties between the two nations.

“This facility will not only strengthen PNG’s energy resilience but also cement the relationship between our two nations,” he said. “Together, we are building infrastructure that serves the needs of today and the promise of tomorrow.”