A new feasibility study could help Tonga strengthen its fuel security, reduce transport costs and protect consumers from international supply disruptions, the Government says.

The United States Trade and Development Agency (USTDA) has agreed to fund the study for Pacific Energy South West Pacific Limited, Tonga’s main fuel supplier. It will examine whether Tonga can receive larger fuel tankers directly, reducing the need for costly transshipment through other countries.

The study will also assess options to increase national fuel storage from about 15-20 days of supply to around 60 days. Greater reserves would give Tonga more protection when international shipping is disrupted or global fuel prices rise.

Prime Minister Lord Fakafanua said improving storage and transport infrastructure would help protect the country and economy from external shocks and provide infrastructure for the long term.

The study will assess three infrastructure options, prepare preliminary engineering designs and consider ways to improve fuel distribution to Tonga’s outer islands. It will also examine possible changes to fuel-pricing regulation that could encourage further private-sector investment.

Tonga imports all of its fuel, leaving the country particularly exposed to international shipping costs and supply disruptions. Existing arrangements require fuel to be transferred through regional hubs before reaching Tonga, adding logistical complexity and costs.

The feasibility study is therefore an important step because it will provide the technical and economic evidence needed before major infrastructure decisions are made.

The Government says the work will also provide access to US technical expertise in port, energy and infrastructure development. Its findings are expected to guide the next steps towards a more resilient and reliable national fuel supply.