2 Apr 2009

PNG court lifts heavy fuel import ban

1:55 pm on 2 April 2009

The anticipated ban on the importation of heavy fuel oil by the government of Papua New Guinea has been lifted by the National Court.

The newspaper, The National, says blackouts were expected in Port Moresby and parts of Central Province earlier this week, as PNG Power Limited planned to reduce the power output at Kanudi power plant by 30 percent.

The company was aiming to stretch existing heavy fuel oil until matters are resolved.

The Post Courier newspaper is reporting the South Korean company, Hanjung Power Limited, which owns and operates the Kanudi plant, won a stay order and a proper court hearing to determine their application for a judicial review challenging the decision to impose the ban.

The paper reports the ban has only been lifted until customers, including Hanjung Power, change their equipment at the Kanudi power plant to use the new type of fuel to be supplied by InterOil.

The matter is expected to return to court on April the 7th.