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4.11 Papua New Guinea

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Additional Service Provision Contact List

Papua New Guinea is a petrol producer, even if the capacities are limited and the reserves decreasing Companies’ . Companies’ exploration and production are mainly located on the New Guinea Island. For example, InterOil has 3 three onshore exploration licenses in Papua New Guinea.

Information on oil refining, facilities and major subcontractors can be found in the following document:

Papua New Guinea Fuel Additional Information

Fuel Pricing

The ICCC

Fuel operators Role and Services
InterOil

InterOil has a complete wholesale, retail and aviation petroleum product distribution base in Papua New Guinea. InterOil is the owner and operator of the Napa Napa refinery. InterOil has a complete wholesale, retail and aviation petroleum product distribution base in Papua New Guinea. This is the result of the acquisition of BP's entire commercial and retail distribution assets through BP Papua New Guinea in April 2004 and the subsequent acquisition of Shell Papua New Guinea on October 1, 2006. InterOil wholesale and retail distribution business supplies petroleum products nationally through an extensive portfolio of sea-board terminals & inland depots and retail service stations. InterOil is currently supplying approximately 70% of Papua New Guinea's refined petroleum product needs.

Mobil 

Primary SIC: Petroleum Products,
Primary NAICS: Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Description: Wholesale: Sale and distribution of fuel; operation of service stations
Mobil is also one of the main partner of the GoPNG in the LNG project

Niugini Oil Company

Import And Distribution Of Petroleum Products

Refining

InterOil refinery is located across the harbor from Port Moresby. The refinery is the sole refiner of hydrocarbons located in Papua New Guinea and can process up to 36,000bpd. The refinery’s production capacity is more than sufficient to meet all of the domestic demand for the refined products in Papua New Guinea. Jet fuel, diesel and gasoline are the primary products produced for the domestic market.

Facilities and Major Subcontractors

InterOil refinery includes a jetty with two berths for loading and off-loading ships and a road tanker loading system. The larger berth has deep water access of 17 metres and has been designed to accommodate 12,000 to 130,000 dwt crude and product tankers. The smaller berth can accommodate ships with a capacity of up to 22,000 dwt. InterOil tanks park has the ability to store approximately 750,000 barrels of crude feedstock and approximately 1.1 million barrels of refined products. 

Supply of Products

InterOil retail and wholesale distribution business distributes diesel, jet fuel, gasoline, kerosene and fuel oil as well as Shell and BP branded commercial and industrial lubricants such as engine and hydraulic oils.

Wholesale Distribution

Both Mobil and InterOil own and operate large terminals and depots throughout Papua New Guinea. InterOil supplies the aviation companies.

Retail Distribution

In addition to their wholesale distribution networks, both Mobil and InterOil run  retail service stations networks throughout the country. 

Aviation Distribution

InterOil owns 11 airfield operations in Papua New Guinea located on or adjacent to the airstrip. Customers include the following; the national Government carrier, commercial passenger airlines, mining and exploration and independent airlines operators.

Fuel Pricing

Fuel Prices as of March 2015

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The ICCC is the independent pricing regulator in PNG. Under the arrangements announced following a public inquiry in 2004, the ICCC has the role of regulating fuel prices in PNG. The ICCC also monitors movements in domestic shipping and road freight rates to ensure that these charges reflect appropriate costs.
The ICCC also determines the actual wholesale and retail margins to be applied to petroleum products. These margins are set by the ICCC and over the current price path period (ending in August 2009) are adjusted each year using a formula linked to the movement in the Consumer Price Index (CPI) less a productivity improvement factor. The ICCC plays an active role in monitoring the ex refinery price of petrol, diesel and kerosene prices in PNG and also domestic transport costs. The wholesale and retail margins component of fuel prices is price controlled in PNG and the margins are determined by the ICCC following a public inquiry.

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Papua New Guinea Fuel Additional Information

Seasonal Variations 

Local supply (domestic refinery production and imports combined) meet the needs of PNG. No shortage of any sort has been noticed recently and prices in PNG are following the international rates. PNG produces its own fuel needs.

Seasonal Variations

Are there national priorities in the availability of fuel? (Yes / No)

No

Is there a rationing system? (Yes / No)

No

Is fuel to lower income/vulnerable groups subsidized? (Yes / No)

No

Can the local industry expand fuel supply to meet humanitarian needs? (Yes / No)

Yes

Is it possible for a humanitarian organization to contract directly a reputable supplier/distributor to provide its fuel needs? (Yes / No)

Yes

Fuel Transportation

How is internal Internal transportation of fuel products is primarily carried out?:

  • Essentially by boat from Napa Napa to the main provvincial ports.
  • From POM and Lae sea ports, land transport is ensured to reach the Highlands areas

The road networks is such that the demand is lower that what it could be. On the other hand, the unreliable supply of electricity lead all the major companies and residences to have their own electricity production capacity, from generators to real fuel power plants of several MegaWatts.Is the transportation infrastructure and fleet sufficient to handle current domestic needs as well as increased demand from the humanitarian community? Yes

Standards, Quality and Testing

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