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Energy Security Commission chair reports on fuel security issues

ASG tank farm facility in Utulei
fili@samoanews.com
We normally have a total of 20-days average supply in stock, Taulapapa says

Pago Pago, AMERICAN SAMOA — The ASG appointed Energy Security Commission has assured Gov. Lolo Matalasi Moliga that fuel suppliers — Pacific Energy and Sunrise Oil —  along with ASG entities, “are working to ensure that we would never run dry.”

Commission chairman, Taulapapa Willie Sword, who heads the local operations of Pacific Energy and is a member of the American Samoa Petroleum Cooperative, gave the verbal assurance during the group’s presentation at last week’s cabinet meeting regarding the security of the territory’s fuel supply.

The governor appointed the 7-member commission on Feb. 14 and they were, “tasked with reporting and analyzing the amount of energy reserves and the sources of our energy supply. Our current status and 16-month outlook are necessary components of this report.”

Concerns with a possible delay of incoming oil tankers, due to issues outside of American Samoa’s control prompted the establishment of the commission, which is also to make recommendations as to programs, policies, and legislation to ensure the fuel security issues are properly addressed.

In his presentation, Taulapapa explained that under the agreements with the two suppliers and the government, each oil supplier is required to have a minimum of 10-days of fuel supply. “Now the 10-days is depended on the demands — sometimes the demand is high, sometimes it’s low,” he said. “So, as long as we have supply to meet that demand at that time, we’re good.”

Right now, “we normally have a total of 20-days average supply in stock every time a tanker comes. Which basically means, we’re more than meeting the 10-day minimum,” he said. “The problem is when you have big demands or the tankers are delayed, or other issues.”

He also explanation that the oil tankers for the two suppliers rotate their time-frame of arriving here. Sunrise tankers are usually in port for one-day as they come more frequently — every 40 to 45 days — with less cargo. Pacific Energy tankers, which comes every 50 to 55 days, stays in port for about two-three days because it has more cargo on it to last that rotation period.

Regarding the “supply logistical issues that could disrupt tanker deliveries” to the territory, Taulapapa cited examples such as “inclement weather...such as a cyclone” that would delay arrivals of tankers and off loading at the port. He said that sometimes other vessels come into port before a tanker and that will delay off loading for tankers, but that’s only for a few hours.

“The main thing is that we have days of supply,” he said and points out that another logistical issue, is “travel restrictions” imposed making it difficult to bring in surveyors when tankers come into port.

He explained that every time a tanker comes in, “we have to bring in people who are surveyors” to make sure that there’s no discrepancies in the counting of the fuel supply that’s off loaded and received by the Petroleum Co-op.

“We have to make sure that there’s a third party surveyor every time a tanker comes in, so there’ll be no question, as to what happen to the cargo,” he said. “So they survey the tankers, before the cargo fuel is discharge and after the discharge, to make sure the bill of lading totals the same. And it’s what we accepted coming from the tankers.”

He cited other issues that could delay fuel delivery including tugboat availability, excess demands, and U.S. Coast Guard regulations

OPTIONS

One of the issues for the commission to address is “emergency fuel supply diversion options” - and this deals with plans in place if tankers don’t come in or an issue that stops the flow of tankers to American Samoa.

He explained that Pacific Energy has a “small-medium range tanker that can bring in a few weeks to get us through until the bigger tankers can come in. So that’s important.” Another option is to increase tanker rotation, making sure that tankers come here faster than the scheduled rotation. For example, instead of the tanker, first going to ports like Samoa, New Caledonia or Tahiti, they would come here first.

The other options, used in the past include borrowing a few days supply from Samoa and internal borrowing and loans such as if Pacific Energy or Sunrise Oil runs low on fuel supply for their clients, the oil companies can borrow from the tank farm until their tankers come in. And the tank farm can do the same under this agreement

Another issue is one that was raised by the governor and that deals with Manu’a fuel supply. “We’re still working on that,” Taulapapa said and assured the governor that the Petroleum Co-op, OPM and the oil companies “are working to ensure that we would never run dry.”