Guam Power Authority seeks alternative fuel sources as Asia's stocks run low
- Admin
- 3 minutes ago
- 3 min read
By Mar-Vic Cagurangan
The Guam Power Authority is exploring the North American market as an alternative fuel source amid critically low stocks in Asia, where the agency purchases fossil fuels.
“Discussions remain ongoing and we are continuing to evaluate potential options,” GPA said.
GPA’s fuel oil supply is sourced from Hyundai Corp., which sources product from South Korea, and Mobil Oil Guam Inc., which purchases from Singapore, Asia’s oil hub.
According to Reuters’ recent report, oil product stocks in Singapore hit their lowest level in more than nine months following the U.S.-Iran war, which disrupted the movement of crude and fuel products passing through the Strait of Hormuz.
Citing data from Enterprise Singapore, Reuters reported that combined onshore oil product stocks totaled 44.83 million barrels in May, the lowest since late July 2025.
Industry experts cautioned that the trend is likely to continue, noting that
80 percent of the crude oil traffic through the Strait of Hormuz—largely blocked by Iran since February—is destined for Asian markets.
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“GPA remains in close communication with Mobil regarding fuel supply conditions,” GPA said in response to the Pacific Island Times’ inquiry. “At this time, Mobil has not indicated any disruptions or impacts to its fuel supply from Singapore.”
Officials said GPA began sifting through fuel supply options beyond Asia, setting its sights on North America since the onset of Operation Epic Fury, which put global oil markets under strain earlier this year.
President Trump extended the temporary Jones Act waiver last month for another 90 days.
Initially set to expire on May 17, the waiver now continues through August, authorizing foreign-flagged vessels to move commodities between U.S. ports and opening the gates for Guam to access the domestic fuel market.
Guam has been locked out of U.S. fuel products because shipping from the mainland requires larger vessels and longer routes, which makes a small island economy an impractical market for American suppliers.
The Public Utilities Commission has greenlighted GPA’s request to establish up to $70-million line of credit as a temporary measure to facilitate continued purchases of fuel for power generation.
GPA has also petitioned the Consolidated Commission on Utilities for an increase in fuel recovery surcharge, from approximately 13.6 cents per kilowatt-hour to 19.4 cents per kilowatt-hour.
GPA said its monthly fuel consumption has decreased by 76,000 barrels per month Ukudu 198-megawatt combined-cycle power plant began operating in December 2025.
The $600 million facility, officially commissioned on May 28, uses “advanced generation technology that captures and reuses heat generated during the production process, significantly improving fuel efficiency compared to older
conventional fuel-oil generation systems,” GPA said.
Developed through a partnership with a consortium led by Korea Electric Power Corp. and Korea East-West Power, the Ukudu plant facilitates GPA's transition away from its aging legacy baseload infrastructure.
“This project is about reliability, resiliency and affordability on a sustained basis, which supports Guam’s energy roadmap for the future,” said John M. Benavente, GPA's general manager.
“For years, GPA has worked to move away from an aging and increasingly
vulnerable generation system. Ukudu Power Plant represents the foundation for the next generation of Guam’s power infrastructure,” he added.
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