PNG oil and LNG shipments face foreign waters ban if waste oil problem not sorted

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PNG shipping of oil and hydrocarbons
PNG shipping of oil and hydrocarbons . . . facing a grim reality. Image: PNG Post-Courier

By Matthew Vari in Port Moresby

Papua New Guinea will face a grim reality of a ban on its shipping of oil and hydrocarbons in international waters if it continues to ignore the implementation of a domestic waste oil policy that is 28 years overdue.

The Conservation and Environment Protection Authority’s Director for Renewable Brendan Trawen made this stark revelation in response to queries posed by Post-Courier Online.

In the backdrop of investment projects proposed in the resource space, the issue of waste oil and its disposal has incurred hefty fines and reputational damage to the nation, and could seriously impact the shipments of one of the country’s lucrative exports in oil and LNG.

“International partners are most protective of their waterways. Therefore, PNG has already been issued with a warning on implementation of a ban of oil and hydrocarbon shipments, including LNG from PNG through Indonesian water,” he said.

In addition, the issuing of a complete ban on all hydrocarbon exports from Singapore through Indonesian waters to PNG.

“In light of growing international concern about the need for stringent control of transboundary movement of hazardous waste oil, and of the need as far as possible to reduce such movement to a minimum, and the concern about the problem of illegal transboundary traffic in hazardous wastes oil, CEPA is compelled to take immediate steps in accordance with Article 10 of the Basel Convention Framework,” Trawen said.

He indicated CEPA had limited capabilities of PNG State through to manage hazardous wastes and other wastes.

Safeguarding PNG’s international standing
The government of PNG had been “rightfully seeking cooperation with Singaporean authorities since 2020” to safeguard PNG’s international standing with the aim to improve and achieve environmentally sound management of hazardous waste oil.

“Through the NEC Decision No. 12/2021, respective authorities from PNG and Singapore deliberated and facilitated the alternative arrangement to reach an agreement with Hachiko Efficiency Services (HES) towards the establishment of a transit and treatment centre in PNG.

“In due process, HES have the required permits to allow transit of the waste oils in Singapore, Malaysia and South Korea for recycling.”

Minister of Environment, Conservation and Climate Change Simon Kilepa acknowledged that major repercussions were expected to take effect with the potential implementation ban of all hydrocarbons and oil shipments through Indonesian waters.

Political, economic and security risks emerged without doubt owing to GoPNG through CEPA’s negligence in the past resolving Basel Convention’s outstanding matters.

“It is in fact that the framework and policy for the Waste Oil Project exists under the International Basel Convention inclusive of the approved methods of handling and shipping waste oils. What PNG has been lacking is the regulation and this program provides that through,” he said.

“CEPA will progress its waste oil programme by engaging Hachiko Efficiency Services to develop and manage the domestic transit facility.

“This will include the export of waste oil operating under the Basel and Waigani agreements dependent upon the final destination.”

CEPA will proceed with the Hazardous Waste Oil Management Programme immediately to comply with the long outstanding implementation of the Basel Convention requirements on the management of Hazardous waste oil.

A media announcement and publicity would be made with issuance of Express of Interest (EOI) to shippers and local waste companies

A presentation would be made to NEC Cabinet and a NEC decision before the sitting of Parliament.

Matthew Vari is a senior journalist and former editor of the PNG Post-Courier. Republished with permission.

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