Majuro, RMI — Marshalls Energy Company (MEC) took a vital step this week to sustain and expand its petroleum business. With the direction of the Board of Directors, MEC management finalized a contract with Ratson Shipbuilding to acquire an approximately 160,000-gallon fuel tanker. The vessel will be the first in MEC’s soon-to-be-created shipping division, which aims to expand and diversify the distribution of petroleum products to Ebeye and other neighboring islands.
The BKI Class, 172-foot ship was built in 2020 in Indonesia. It will be modified to meet MEC requirements and to meet open ocean operational use before shipping to Majuro in late 2021. The vessel is anticipated to be in operation by December 2021, assuming modification works and delivery are on schedule.
MEC currently provides diesel, liquid petroleum gas (LPG), and lubricants to power utilities, fisheries vessels, and for domestic and commercial marine and land transport, primarily in Majuro and Ebeye. “With the new vessel, MEC intends to supply gasoline to neighboring islands at prices comparable to Majuro, says MEC CEO Jack Chong-Gum.” The CEO further added, “MEC does not intend to compete with the private sector; instead it aims to be the main distributor and supplier of petroleum products in the RMI. This is the vision of the utility’s founders when they created MEC.”
The vessel will also allow MEC to meet its mandate of providing a secure and consistent supply of petroleum products to the neighboring islands, closing the gap for access to affordable and sustainable fuel in these remote areas.
MEC management states: “MEC is committed to providing affordable and secure energy supply to the neighboring islands. The purchase of this vessel not only aligns with MEC’s mission to provide reliable and efficient energy to enhance the quality of life for the people of the RMI, but also with the RMI’s National Strategic Plan and Energy Policy Framework.”
The operation and maintenance of the vessel will be overseen by MEC’s shipping division. MEC’s expanded business is anticipated to create a dozen of new jobs.
The purchase is part of MEC’s long-term strategy to improve the utility’s economic viability. MEC CEO said, “the acquisition of this fuel tanker will greatly improve MEC’s commercial platform by growing MEC’s presence in the RMI and eventually in neighboring countries in the region.”
