Islands Petroleum introduces cleaner diesel fuel option in Lae

Islands Petroleum has introduced a new fuel product in Lae aimed at supporting modern vehicles, heavy machinery and industrial operations across Papua New Guinea.

The company has commissioned a new storage tank at its Lae facility for Ultra Low Sulfur Diesel [ULSD], a cleaner type of diesel fuel with lower sulfur content compared to regular diesel.

Islands Petroleum says the new fuel will help improve engine performance, reduce engine wear and provide customers with a higher-quality fuel option as more businesses invest in modern vehicles and equipment.

Engineering Manager Moses Samo said ULSD contains fewer particles, which helps engines operate more efficiently.

“ULSD is a diesel product with a lower sulfur content in the fuel. A simple way to understand it is that it contains fewer particles, making it better for engines and helping improve engine durability, meaning engines can last longer,” he said.

Samo said fuel can be used in everyday diesel vehicles, but it is especially beneficial for newer trucks, vehicles and heavy equipment that require higher fuel standards.

“This is a higher-specification diesel fuel. It can be used in normal vehicles, but it is especially good for newer vehicles coming into the market, including modern trucks that require efficient and higher-performance fuel,” he said.

Islands Petroleum chief executive officer Nathan Bluett said the investment comes at a time when the global fuel market continues to face uncertainty.

He said international oil prices remain the biggest factor affecting fuel costs.

"We manage fuel supply through a global supply chain and we are subject to global fuel prices. The global oil price is the biggest factor that determines fuel prices,” Bluett said.

He said the new storage facility will improve fuel supply reliability for customers in Lae and the wider region.

The company supplies fuel to several industries, including marine services, trucking, logistics, retail, manufacturing and other industrial operations.

“This project to increase our storage capacity in Lae comes at a time of global fuel uncertainty. This adds further capacity to our storage in Lae and adds to our supply chain reliability,” Bluett said.

Bluett said demand for cleaner fuel is increasing as businesses upgrade their fleets and purchase newer equipment.

“We are seeing growing demand from customers expanding their fleets and investing in newer trucks, vehicles and equipment,” he said.

He added that ULSD gives customers more choices when buying modern vehicles and machinery.

“We want to give our customers the freedom to buy their new fleet, their new truck, or that new piece of equipment that needs the new fuel,” he said.

Islands Petroleum says the ULSD project is part of its wider investment to strengthen fuel storage and supply security in Papua New Guinea.

The company employs more than 600 Papua New Guineans nationwide and says the new fuel product will support the future needs of the transport, mining and industrial sectors by providing a cleaner and more efficient fuel option.