Prospects bright for jet fuel depot on Tinian

Prospects are bright that the Commonwealth Ports Authority will soon manage to strike a deal with either Shell Marianas or Mobil Oil Micronesia for the construction of an aviation fuel depot on Tinian.

Executive Director Carlos H. Salas disclosed CPA has been alerted by both oil companies of their interest in undertaking the aviation fuel depot project although no official decision has been made so far by either party.

“We have been told that both Mobil and Shell are seriously looking at the possibility of undertaking the project although between the two, Mobil is the one which has been very vocal about doing it,” Mr. Salas told reporters in a media briefing.

He said the oil companies may already be undertaking financial feasibility studies of the project in order to make sure that the proposed investment will eventually prove profitable.

In light of the scheduled construction of the new West Tinian International Airport runway within the month, CPA has renewed discussions with oil companies for the establishment of an aviation fuel depot on the island.

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 recent awarding of the contract, 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.