PNG Prime Minister James Marape unveiled the government's intention to construct vital infrastructure for fuel storage in the country. Marape addressed reporters, highlighting the Cabinet's decision to tackle the persistent issue of fuel shortages. "In the long term, with Kumul Petroleum Holdings Ltd and other subsidiaries, we are looking at the possibility of setting up additional infrastructure for fuel storage," he announced. "We are exploring collaboration with the United States (US) under the Defence Cooperation Agreement to potentially establish fuel bunkering in key locations such as Port Moresby, Lae, and Manus. Our goal is to create fuel storage independent of private companies, ensuring the nation's fuel security." The Prime Minister also disclosed ongoing considerations regarding the acquisition of Puma Energy's facilities at Napanapa. "We are evaluating the infrastructure owned by Puma Energy in Napanapa," he explained. "This is part of the comprehensive review concerning the Napanapa project agreement." Simultaneously, Marape informed the public that the Bank of Papua New Guinea (PNG) had received a directive to provide sufficient foreign exchange (FX) to support fuel importers. "Cabinet has directed the Central Bank to ensure an ample supply of FX for all fuel importers. State-owned enterprises are instructed to shift US dollar holding accounts to commercial banks, ensuring a steady FX supply for fuel." Marape acknowledged that legal advice was being sought regarding the Napanapa project agreement between the State and InterOil (now Puma Energy). He attributed a significant portion of the recent fuel crisis to the agreement, allowing a monopoly on wholesale importation and distribution of fuel until 2027. "We are currently bound by a monopolistic arrangement with Puma fuel supplies, which occupies a substantial part of our market," Marape emphasized. "In the medium term, we plan to introduce legislation in the May parliamentary session to reduce the fuel supply monopoly and promote market competition. The State Solicitors Office is actively reviewing the agreement with InterOil to address the challenges faced in the fuel sector." Also read Comments are closed.
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