CPA renews talks with oil firms for a jet fuel facility on Tinian

With construction of the new West Tinian International Airport runway set to begin in a few days, the Commonwealth Ports Authority has renewed discussions with oil companies for the establishment of an aviation fuel depot on the island.

Executive Director Carlos H. Salas said CPA has already started sending invitation to Mobil Oil Marianas for a discussion on the possibility of the company building a jet fuel facility at the Tinian Airport.

Mr. Salas said CPA has initially opened up the possibility with Mobil because it has previously expressed intention to pour in $100,000 in investments for the installation of an aviation fuel facility on Tinian, as part of beefed up efforts to encourage major airline carriers to provide direct international flights to the island.

Mobil was worried about recovering the $100,000 investment when the proposal was laid down last year since construction of the new West Tinian International Airport runway was still in limbo during that time due to lack of funds.

CPA had also went as far as initiating negotiations with the Tinian Legislative Delegation for any assistance that may be extended to Mobil in order for the oil firm to carry out the proposed installation of aviation fuel facility.

After almost two years of discussion with CPA, however, none among the oil firms here have pledged commitment to undertake the project but Board Chair Roman S. Palacios is confident the agency has a better chance at striking a deal with either Mobil or Shell.

In an interview, Mr. Palacios said negotiations are still underway with both oil companies for the construction of an aviation oil depot on Tinian which would allow airlines to gas up on the island without having to stopover Saipan.

Carriers that previously expressed intentions to fly nonstop to Tinian were concerned of the potential problems their aircraft may encounter when taking off from the island due to the absence of a refueling facility.

A 727 aircraft, which is among the very few models that can be accommodated by a 6,000-foot runway, would have difficulties taking off without any aviation fuel facility on Tinian.

A 6,000-foot runway can still accommodate 757 aircraft on a restricted load, although air companies will have to reduce the number of passengers and the amount of fuel before take off.

But as CPA expects construction of an 8-600-foot airport runway on Tinian to begin in a few days following the formal groundbreaking last week, Mr. Palacios said it may be a lot easier to encourage any of the oil firms in the CNMI to establish the jet fuel facility there.

At the same time, Mr. Palacios is upbeat that the new air transport facility will open the floodgates to tourism and economic development on Tinian, as he expressed confidence that the island’s casino gaming initiative is sure to enjoy a huge market.

He disclosed foreign airline companies, confident that Chinese tourists are now willing to travel outside Asia and that a tropical gaming destination is right on target, have already expressed interest to provide direct service to Tinian.

“It may seem like a gamble but I believe this is the right place at the right time and we’re about to hit the jackpot. This improvement will help us handle increasing numbers of passengers until we build the international terminal,” he added.