Nauru fuel supply

Nauru Fuel Supply (2025)

The Department of Finance manages the joint venture agreement (SATO) with Vital Energy to provide wholesale fuel supply and management of the Nauru Tank Farm. Vital is responsible for importing various fuel products and the day-to-day management of the Tank Farm.

No significant shortages or outages of fuel supply have occurred since Vital assumed the fuel supply management in 2015.

In 2015, the Government commenced a major engineering upgrade to the Tank Farm to bring the operation to an international standard. This work is well underway with recertification of all tanks (50% now completed in 2025), new electrical system, fire break road, new fencing and lighting, new office building planning completion by 2030.

This project (TRUP – Tankfarm Rehabilitation and Upgrade Project) is funded internally by GON with a mix of fuel sales levies and an annual budget allocation depending on cashflow requirements.

A new pipeline to the Port included in this upgrading work is complete. This upgrade work will facilitate possible future fuel bunkering activity for ships using the new Port once the next phase of replacement of the pipelines from the Tank farm to the new Wharf line in 2026-27.

During 2019-20, Nauru converted to a supply of cleaner ten parts per million (low sulphur) diesel fuel. This will contribute to Nauru meeting its global commitment to reducing greenhouse gas emissions. It is in line with other Pacific Island Countries and shows Nauru’s commitment to a better environment for all its people.

In 2020-21, the Government re-tended the fuel supply and tank farm management (SATO agreement) for Nauru. The periodic testing of the market for operation and supply of fuel supplies will ensure Nauru obtains the best value fuel by international standards.

Nauru commenced a 5-year agreement for supply and management in 2022.

The new all-weather Port under construction will allow for less risk for suppliers and decrease demurrage costs, equating to lower delivery costs. In addition, the next stage of solar power installation is now scheduled for December 2025 completion and brings Nauru to 50% renewable. 

These factors will assist in managing the fuel prices in Nauru, along with supporting NUC in a decrease in the use of diesel for power generation.