Pacific Lime and Cement (ASX:PLA) Opens Expressions of Interest for Kido Strategic Fuel Reserve

Aditi Sarkar

28 October 2026 05:03 PM AEDT

Pacific Lime and Cement (ASX:PLA) Opens Expressions of Interest for Kido Strategic Fuel Reserve

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Highlights

PLC completed a concept study for a strategic fuel reserve at the Kido/Rearea Special Economic Zone near Port Moresby.
Phase 1 proposes storage of 11.25 million barrels of diesel and jet fuel in 52 tanks.
PLC plans for strategic partners to fund and build the tank capacity, with its subsidiary acting as landlord.
An expression of interest process is now open to shortlist partners and offtakers.

Pacific Lime and Cement Limited (ASX:PLA) (PNGX:PLC) has opened an expression of interest process for a proposed regional strategic fuel reserve at its Kido wharf-side site in Papua New Guinea. The site, about 35km from Port Moresby, is held by its 87%-owned subsidiary Mayur Industrials PNG Limited (MIPL).

Concept Study and Phase 1 Scope

The company has completed a concept study for a strategic fuel reserve at the Kido/Rearea Special Economic Zone and port precinct. Phase 1 proposes storage of 11.25 million barrels of diesel and jet fuel across 52 tanks on a 70ha wharf-side site with two berths.

Advisers MTBS indicated, at a preliminary concept level, that capital cost per barrel sits at the lower end of the range for comparable international terminals. The project could be expanded across three phases to serve additional sovereign or allied customers.

Location and Funding Model

Kido is about 1,830 nautical miles from Australia's east coast, compared with about 3,630 nautical miles for Singapore. Laden tankers could reach Townsville in an estimated two to three days and Sydney in six to seven days. Phase 1 would be about 1.8 times the size of the reserve planned under Australia's Fuel Security and Resilience Package.

PLC intends to bring in strategic partners to fund and build the tank capacity and does not plan to fund Phase 1 from its own balance sheet, apart from limited shared infrastructure. MIPL would act as landlord, earning lease, sublicence and port-related income. MIPL holds 99-year State Leases over a 4,500ha Special Economic Zone, and the PNG Government holds a 13% interest in MIPL.

Approvals and Next Steps

The Kido wharf base infrastructure is environmentally permitted, and the SEZ licence covers liquid fuel storage. However, the reserve will still require its own development, environmental and marine approvals, front-end engineering design and a final investment decision.

Next steps include a structured process to shortlist partners and offtakers and preparing the approvals pathway and engineering scope for Phase 1. PLC has not entered any binding agreement, and the figures are concept-level estimates.

Key Takeaways

PLC is seeking partners for a large strategic fuel reserve at Kido.
Proximity to Australia is a key advantage over Singapore.
A partner-funded model limits PLC's own capital commitment.
Further approvals, engineering and binding agreements are still required.

FAQs

Q: What is PLC proposing at Kido?

A: A strategic fuel reserve storing 11.25 million barrels of diesel and jet fuel in Phase 1.

Q: Where is the Kido site?

A: About 35km from Port Moresby, Papua New Guinea.

Q: Who will fund the project?

A: PLC plans for strategic partners to fund and build the tank capacity.

Q: How quickly could fuel reach Australia?

A: An estimated two to three days to Townsville and six to seven days to Sydney.

Q: Are there binding agreements in place?

A: No, PLC has not entered any binding agreement.

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