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Tonga Petroleum Supply Chain Study

Amali Shaw's picture
Submitted by Amali Shaw on August 10, 2016 - 2:53pm
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Aims to develop a range of options for reducing Tonga's vulnerability to petroleum price volatility by improving the efficiency of their fossil fuel supply chains and fuel pricing arrangements.

In 2010, the feasibility of an MR tanker port in Tonga is being investigated to assess whether it could provide a more cost effective and efficient supply for Tonga’s petroleum fuels. The cost of petroleum fuels is a significant item in Tonga’s budget and any cost savings have a benefit across the economy as both petroleum and electricity prices are linked to the cost of fuel.

The Government of Tonga is considering possible ways to enable the supply of  petroleum by medium-range (MR) tankers. The primary objective of using MR tankers is
to bring down the price of petroleum products in Tonga by reducing shipping and freight costs. The Government of Tonga has engaged Chapman Tripp (together with
Castalia, Hale & Twomey, and Anthony Harper) to independently assess the possible models for MR supply and recommend a way forward to Cabinet.

The report published in 2015, evaluated 4 options for MR supply into Tonga.

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