Petroleum Advisory Service 2015 Activities update

Pacific Energy Advisory Group meeting17 November 2015

Nabua, Fiji SPC Petroleum Worshop - December 2014 1

Petroleum Advisory Services (PAS) overview

• The SPC Petroleum Advisory Service has four broad priority focus areas, being– Market Information Data– Supply Pricing and Logistics– Safety Environment and Training– Development of Alternative Fuels

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PAS Market Information Data

• Extract and organise Platts and Saudi Contract price data for crude oil, fuel and LPG grades most relevant to PICTs,

• Analyse data and produce regular reports and articles for a number of publications,

• Provide regional pricing data to PICTs on a regular basis to inform their periodic fuel price reviews,

• Create and publish the Pacific Fuel Price Monitor using information gathered and analysed from PICT members on a three monthly basis.

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PAS Supply, Pricing and Logistics• Cook Islands – Re-engineered the national fuel & LPG pricing templates. • Tonga – reviewed the fuel pricing template and advised on implementing MRX

project to increase national energy security.• Kiribati – assembling a regional team to perform a NEEDS ASSESSMENT for the

Kiribati Oil Company (KOIL) and explore international tender options for fuel supply and services.

• Solomon Islands – conducted annual review of fuel pricing template parameters and related issues.

• Tuvalu – reviewing the fuel and LPG pricing templates• Fiji – Fuel market reorganisation plans are in limbo.• Petroleum Sector input on Kiribati and Niue Energy Road Maps.• Produced and launched the Pacific Islands Fuel Pricing Manual to support PICT fuel

price monitoring and/or regulation. • During 2016, planning a ‘Fuel Buyers Club’ meeting which will include the

independent terminal owners to discuss issues in common. SPC Petroleum Worshop - December 2014 4

PAS Safety, Environment and Training • Reviewed retail fuel sites in Kiribati, Samoa, Solomon Islands, Tonga and

Tuvalu for compliance with international industry standards. • 72 sites inspected and assessed as low, medium and high risk

– 8 (11%) low, 37 (51%) medium and 27 (38%) high risk.– In 3 of the 5 countries, NO sites were assessed as low risk.

• Negotiating future Dangerous Goods and Safety related training module access through NZ Worksafe.

• Promoting PICT attendance at oil spill and fire fighting training being held around the region and annual national training.

• Developing a PICT regional industry Code of Practice based on AS1940:2004 - The storage and handling of flammable and combustible liquids and AS/NZS1596:2014) The storage and handling of LP Gas

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Alternative fuels - Biofuel• Biofuel development priorities will focus on – Coconut to biofuel, Vanuatu is leading the way with

UNELCO successes – Fuel ethanol – Fiji is commercialising fuel ethanol from

sugar cane – Biomass to biogas, based on European and Canadian

technology.• SPC is developing and seeking funding for a multi-year

proposal for sustained regional cooperation on the long term sustainable, economic development of coconut biofuel.

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Coconut to Biofuel Regional Cooperation project

Three project phases are being planned • Phase One (8 months) – Desk top study to document all coconut biofuel regional

experiences and learnings to date and to identify state of the art coconut-to-biofuel technology.

• Phase Two (2 years) - PICT Organising Committee (involving public and private sector) to identify coconut resources and highest biofuel potential. – initial focus on Fiji, New Caledonia, Papua New Guinea, Solomon Islands and

Vanuatu as the largest potential for EXCESS coconut resources.– Identify project focal points including ensuring economic benefit flow to village

cooperatives, coconut oil extraction, fuel conversion technologies, processing centres, capital equipment and training needed.

• Phase Three (initially 5 years) – Establish Regional Coordinating Council to oversee project implementation – Donor funds – targeting Green Climate Fund (GCF) – Contributions from participating PICTS will be required SPC Petroleum Worshop - December 2014 7

Alternative fuels - LPG and LNG

• PRIF study (with PPA, SPC and World Bank) on the expansion of LPG and introduction or LNG within PICTs has been completed.

• Regional consultation was held in Hawai’i in July 2015 and the final project report is scheduled for December 2015.

• Good potential for LPG price reduction and expanded volumes with increased use of bulk shipments.

• LNG shows good potential for major new mining projects. • SPC is coordinating Pacific Islands involvement in the World LPG

Association Summit @ Gold Coast Australia in May 2016 and will be nominating speakers and delegates over the next few weeks. SPC Petroleum Worshop - December 2014 8

• PRIF study (with PPA, SPC and World Bank) on the expansion of LPG delegates over the next few weeks.

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Vinaka

Merci

Obrigado

Thank you

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