Ceremony to mark the official ownership of Tonga Gas Ltd by the People of Tonga.
The unresolved conflict between Israelis and Palestinians is at the centre
A ceremony was held at the Homegas Touliki Terminal in Ma’ufanga to mark the official ownership of Tonga Gas Ltd by the people of Tonga.
The ceremony was officiated by the guest of honour, Hon. Poasi Tei, the Minister for Public Enterprises, attended by Lord Matoto, president of the Constitution Free Church of Tonga, the Chairman of Tonga Power’s Board of Directors, Mr Carl Sanft and guests.
The official transfer ownership of Tonga Gas from Fiji Gas Ltd concludes a period of negotiations and dialogue to localize the ownership of Tonga Gas Ltd after being owned by foreign companies for over 40 years.
History
The history of the supply of Gas to Tonga started back in 1973 when the supply of gas was carried out by Origin Energy Australia. In 1980, the supply of gas was taken over by Boral Gas Tonga, a company owned by Origin Energy Australia. In 1983, that ownership has changed and Fiji Gas took over from Origin Energy Australia. From 1983 to 2000 Fiji Gas became the main supplier of gas to Tonga. In year 2000, Tonga Gas started supplying gas to Tonga under the ownership of Fiji Gas Ltd.
Operation
John van Brink, Tonga Power’s CEO said “Tonga Gas owns a total base asset of approximately TOP$3 million in comparison to Tonga Power’s asset base of some $80 million”.
“While the two gas companies, Home Gas and Tonga Gas, continue to operate as separate entities, combined, both retails around 1, 500 tonne of LPG (Liquid Petroleum Gas) throughout Tonga”.
“This equates to 110,000 cylinder fills per year with 70% of the population using LPG for cooking making access to LPG as important as it is for electricity”.He said, this was one of the reasons why Tonga Power saw LPG business as a natural fit for Tonga Power’s expertise and growing customer awareness.
Prior to the achievement of purchasing Tonga Gas, Tonga Power Ltd acquired Home Gas and it became a subsidiary of Tonga Power Ltd where the commencement of Tonga Power’s involvement in the gas business emerged.
“The acquisition of Tonga Gas will enable the two parts of the supply chain to eventually merge operations and become a single, Government owned, supplier of gas and associated services”, said John.
Opportunities
In his remark to the gathering, Hon Poasi Tei, Minister for Public Enterprises said, “Tonga Power was involved in the LPG market as part of their strategic goals for cleaner and cheaper energy for the people”.
According to Tonga Power’s CEO, “The transition of Tonga Gas Ltd to a new ownership will offer significant importance for the future of Tonga’s energy industry with potentials for automotive gas, expanded sales to the outer islands, remote island LPG based generation, and possible substitution of diesel fuel with liquid natural gas (LNG), a stop gap towards a renewable electricity supply”.
The Chairman of Tonga Power’s Board of Directors, Mr Carl Sanft also announced a reduction in the price of LPG by $2 per 13 kg fill which will be put into effect immediately.
Source: Government of Tonga
