The United States has awarded a $400 million contract, equivalent to 1.6 billion Kina, for the construction of a large fuel storage facility near Port Moresby Harbor in Papua New Guinea. This initiative, managed by the Department of Defense, will provide storage for over 1.6 million barrels of fuel. The development is a response to a request from the Government of Papua New Guinea to support its fuel storage requirements and diversify the types of fuel available in the market.
"This investment reflects the importance we place in our bilateral relationship, and the results of continued discussion and collaboration," commented Ann Marie Yastishock, the U.S. Ambassador to Papua New Guinea.
Admiral Paparo, Commander of the U.S. Indo-Pacific Command, discussed the nearly half a billion-dollar award with Deputy Prime Minister John Rosso and Foreign Minister Justin Tkatchenko on April 25, 2025. The U.S. Embassy pledged vigilant and open communication with the Government of Papua New Guinea throughout the project's construction phase.
The project will be implemented by DGCI Corporation, a U.S. company recognized for constructing and operating large-scale fuel facilities globally. DGCI is known for its mission-critical and innovative solutions, emphasizing mutual trust and respect in its international partnerships, and promoting economic development.
This contract coincides with the upcoming 50th Year of Independence for Papua New Guinea and marks 50 years of formal diplomatic relations between the U.S. and PNG. It aims to reinforce the nations' partnership in support of a peaceful, secure, prosperous Pacific region.
The initiative is underpinned by the Defense Cooperation Agreement signed in 2023, which serves as the cornerstone of security cooperation between the U.S. and PNG. The United States has been actively engaging with the Papua New Guinea Defense Force through training, bilateral exercises, and other forms of ongoing engagement since the agreement took effect.
The enduring relationship between the United States and Papua New Guinea is built on a foundation of shared history, values, and future aspirations.