Solar Association: Focus On Green Energy
by PNG Business News - June 13, 2022
Photo credit: Reve
According to the Solar Energy Association of PNG, foreign investments in the energy industry are now focusing on green energy, but the country's institutional frameworks are insufficient to take advantage of the prospects.
President Christian Lohberger said: “PNG was one of the first countries to sign the Paris Agreement on climate change and under our national commitments, we have set a target of the electricity sector being 78 per cent renewable by 2030.
“Currently, we are less than 50 per cent renewable and have a growing LNG industry.
“So we need to develop a pipeline of hydro, solar and eventually wind projects.
“Happily, these are also cheap and (in the case of solar) very fast to build.”
According to Lohberger, the LNG business presently dominates the PNG energy sector, although LNG is extremely expensive to acquire (or not export) owing to the Ukraine conflict.
“LNG is also very polluting with huge methane and carbon dioxide emissions that destroy our environment,” he said.
“It is difficult to see LNG competing with solar and other renewables from a price perspective, particularly if a carbon price is adopted.
“Our major trading partners are all adopting carbon prices and this will pressure us to clean up emissions.
“Europe and China already have active carbon prices with the US having a tax credit that effectively works the same way as a carbon price.
“Australia once had a very successful carbon price but it was removed for political reasons.
“Looking forward a few years, the most likely scenario is a grid that is almost entirely powered by solar and wind with hydro for backup on rainy and windless days.
“LNG might be useful for extreme situations a few times a year when demand cannot be met.”
Reference: Luma, Dale. The National (8 June 2022). “Association: Focus on green energy”
PNG Business News - April 29, 2021
Parliament Passes Energy Bill
The National Energy Authority Bill, 2020 was passed by the National Parliament with an overwhelming majority of 73 to 0. The National Energy Authority Bill was created to control renewable and non-renewable energy production, storage, delivery, and retailing. The Act will also cover the following functions: Governing the oil market by overseeing the implementation and implementation of rules, legislation, and policies. Levies, fines, tariffs, and other charges are received and collected. Responsibilities for energy research and development in order to put energy policy and legislation into practice The aim of the Act Administer the National Electrification System is to approve the corporate policies of subsidiary corporations and affiliates Administrate the National Electrification Trust Funds The Bill for an Act to Reform the Electricity Industry Act 2020 was also passed. The National Energy Authority 2020 and the Electricity Industry Act Amendment Bill 2020, according to Minister for Energy and Rural Infrastructure Saki Soloma, are the culmination of the work undertaken so far in restructuring the energy market. He said that the passed Act of Parliament would create energy and electricity industry legislation for the energy sector in general. According to him, the National Energy Authority Bill 2020 establishes a robust and equitable legislative framework, with fines imposed on those that violate the Act and regulations. He went on to say that the Electricity Industry Act (Amendment Bill) contained consequential changes to the Electricity Industry Act, allowing the National Energy Authority Act, which was passed by Parliament, to go into effect right away. The National Energy Authority Bill 2020 is based on the same model used for the establishment of stationary authorities such as the National Fisheries Authority, National Information and Communication Technology Authority, and others, according to the explanatory notice. It specifies that the National Energy Authority is a policy and regulatory agency, not a commercial institution, as stated in the Act. PNG Power Limited will no longer be an economic or technological authority and the NEA will conduct the licensing and technical functions that were formerly handled by PNG Power Limited.
PNG Business News - May 04, 2021
Australia Supports Electrification for PNG
The Australian government has decided to contribute $US90 million (K315 million) to the Marape government's top-priority Edevu Transmission and Electrification program. The Edevu hydropower plant, which is based in Sogeri, is part of the Papua New Guinea Electrification Partnership, which seeks to reach 70 per cent electrification across the country by 2030 with the support of Australia, the United States, New Zealand, and Japan. Treasurer Ian Ling-Stuckey praised the announcement, calling it a major step forward for the Marape government's electrification efforts. “With only 13 per cent of the nation connected to power, this is a very important and ambitious project,” he said. “We know that the original announcement was made at the APEC meeting. This was a good announcement. But it is one thing to make big announcements and cut ribbons. “Support from our international friends and allies is critical, and I am grateful that Australia, through the Australian Infrastructure Financing Facility for the Pacific, is coming to the party.” Ling-Stuckey stated that the discovery would be on favourable terms, with a $US18 million grant portion (K65 million). The money will be on-loaned to PNG Power Ltd, pending NEC clearance. The Edevu project would have the required infrastructure to link modern hydropower generation to the Port Moresby Grid, allowing diesel generation to be replaced at a lower cost and with less environmental impact. It will also allow for the upgrade of substations to improve grid stability. PPL will now be able to purchase and mount smart meters in consumer premises as part of the funding. Taxes, duties, levies, and fees on supplies, utilities, and facilities available for the project would be exempted as part of the Marape government's contribution.
PNG Business News - March 11, 2021
Puma Energy Concerned About Shortage of Forex
Puma Energy PNG Ltd is concerned about a shortage of foreign currency (forex) to import crude oil in a timely manner, according to country manager and director Hulala Tokome. The business paid for its crude supplies when forex was available on the market, he said. Tokome added that the availability of forex had influenced the crude oil purchase schedule, also commenting on oil prices, citing Platts as a source. According to Tokome, oil prices for February have been steadily rising. Platts is a source of benchmark price assessments in the physical energy markets and a provider of energy and metal knowledge. “Hence, we will have an increase in prices for March as the Independent Consumer and Competition Commission (ICCC) pricing structure is based on Mean of Platts (MOP) Singapore prices for the prior month,” Tokome said. “There is a one month lag on pricing effect. “All eyes will be on the Opec (Organisation of petroleum exporting countries) meeting. Their decision to increase crude oil production or not will determine which direction prices will go. There is strong market optimism around global demand returning on the back of vaccine rollouts.” Many countries have begun to announce plans to phase out lockdowns, he said, and the warmer weather could help support demand. “With this, prices should continue to trend upwards,” Tokome said. Brent rates are currently at US$64/bbl (K220.95/barrel of oil), according to Tokome.
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PNG Business News - June 24, 2022
Creating decent income-earning opportunities for rural communities in Papua New Guinea under road maintenance programme
EU Funded UN Joint STREIT PNG Programme, as part of its mission to support efforts towards reducing rural poverty, is engaging local communities with a focus on struggling single parents as a support workforcefor maintenance of 18 selected farm-to-market roads in the Sepik region. Led by the International Labour Organization (ILO), the creation of these employment opportunities in remote communities where there are limited income-generating activities because of lack of accessible roads to markets is a relief to many disadvantaged households. This month the ILO team visited some of these beneficiaries who are employed in the Road Maintenance Groups (RMGs) working on a 17.7km-long Walkasa Mai-Wanwan road and an 8km-long Yiminum-Wilbowe road in the Nuku District of Sandaun Province. For the beneficiaries, this is a lifetime opportunity for a regular and steady income to support their and their families' everyday needs, and one important concern for the struggling families is paying for their siblings' and kids' school fees and associate costs. Among the struggling families are some widows like Marathia, aged 59, from Yiminum Village, who works on the Yiminum-Wilbowe road. "My husband died, and we were really struggling because our families have their own problems to take care of. Now, I'm very happy with this job which I joined last year. It helps with school fees for my children," said Marathia. Marathia was left with five children to support, including one who is attending final year studies at a vocational training nearby. With the income as an RMG, she was able to pay PGK 500 school fee last year and early this year she paid PGK 250. She said the community is also happy to see her contribution in a job they usually see as for men only. For youths like Jena Suwa this employment opens a new window to their life. She was not able to complete her studies after year 10 in 2018. "I'm very happy today because I was doing nothing in the house. I will now save some money to prepare to go back to school to become a nurse," said Jena. Sony Apo is another youth who completed Grade 8 in 2015 and is looking forward to some money to upgrade. He dreams of becoming a carpenter to continue the legacy of his late 'big daddy'. "Big daddy was the only skilled man we had in the family, and now I'm ready to become a carpenter as well," he said. The main works that encompass the road routine maintenance aspect to be undertaken by the RMGs include pothole patching, vegetation clearing, drainage and general cleaning along the road in preparation for engagement of a contractor to perform specific maintenance on these farm-to-market access and feeder roads. Safety gears and road maintenance tools like boots, gloves, vests, safety helmets, spades, hoes, wheelbarrows were also among the tools and equipment provided and distributed by the EU-STREIT PNG Programme among the RMGs' members. During the visits, the Programme's Community Facilitator, Rachel Bowie also shared with the RMGs to demonstrate commitment in their work to take ownership in the routine maintenance of these roads because it will serve them, their families and their fellow community members. The mission also conducted a drone survey of a 14km-long Nanaha-Tau LLG access road in the Ambunti-Drekikier District, East Sepik Province. In consultation with Ward Members, locals, including youths and women, were also recruited to form RMGs to conduct routine maintenance for this road that will also service Drekikier Secondary. Under the Programme selection criteria, one RMG comprises six members that must have at least two females. The group must also have representation from youths, single parents whose partners have died or have deserted them and traditional owners of land the road passes through. The Programme, in partnership with MiBank, a local financial institution, is implementing cashless transactions and banking for rural farmers by opening bank accounts for these RMGs, and their payment is deposited directly at the end of every month. This arrangement encourages rural farmers to save and grow their earnings, which can be used to access small loan benefits. Under this rural agriculture development programme, 18 rural roads in the Sepik region totalling close to 300 km in length are being maintained or upgraded with the help of RMGs to support the market access initiative implemented by the EU-STREIT PNG Programme for rural and farming communities to boost agriculture production and agribusiness activities pertaining to three targeted cocoa, vanilla and fisheries agri-food value chains for an improved income and cash flow for the rural communities. The roads will also support other agricultural, business, social and community activities and facilities like schools, aid posts and health centres that are in dire need of better accessible roads. The EU-STREIT PNG Programme, being implemented as a UN Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development.
PNG Business News - June 24, 2022
Santos welcomes new apprentices in higher-level program
Photo: Leon Buskens, Santos Country Chair PNG meeting the 25 new apprentices in Port Moresby before their departure to the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia. Joining Mr Buskens and the apprentices are members of the Santos Training and People & Culture Teams. Santos is helping to equip Papua New Guinea’s next generation of oil and gas technicians with international qualifications. Ten females are among 25 novices who have joined the Santos 2022 Apprenticeship Program following a rigorous selection process which will see them train at the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia – 900 applications were received for the 2022 Program. Upon completion of the technician training at INSTEP, the apprentices will earn a Pearson Business Education Technology Council Level 2 and Level 3 UK qualification. Santos Country Chair for PNG, Leon Buskens when welcoming the apprentices, said: “You have joined at an exciting time following the merger between Oil Search and Santos. As the inaugural batch under the merged entity, there are greater opportunities for you to advance in all aspects of your career both in PNG and abroad. I encourage you to do your best and importantly, maintain a positive attitude and uphold your values - this is what will take you far on this journey. “This is the beginning, but you should be proud of yourselves as we are of you for making it this far. Congratulations and welcome to Santos.” Joining Mr Buskens to address the new cohort were pioneering trainees Cornelius Soagai, Senior Government Affairs Manager and Lydia Warubi, Deputy Occupational Health & Safety Manager. Mr Soagai went on to become the first national Production Manager in the Operations and Maintenance Department while Ms Warubi made waves as the first national female process technician to work at the Central Processing Facility. Both leaders encouraged the apprentices to maximize on the career development opportunities available to them at Santos. Among the cohort was Judy Sasa who completed the Company’s pre-apprentice program at the Kumul Petroleum Academy (KPA) in 2020. Judy finished at the top of her class and attained an honourable achievement award. A grateful Judy thanked Santos for a further opportunity to broaden her knowledge in oil and gas production. “My dream is coming true as I have always wanted to work in this industry,” Ms Sasa said. The 25 apprentices along with the Santos training team departed PNG for Malaysia last weekend. Two permanent employees were also part of the travelling party to INSTEP where they will train to become dual Electrical & Instrumentation tradesmen. Article courtesy of Santos
PNG Business News - June 23, 2022
PM Marape says East Sepik can become ‘economic powerhouse’ of PNG
Photo: PM Marape addressing the crowd in Maprik Prime Minister Hon. James Marape says East Sepik has the potential to become the “economic powerhouse” of Papua New Guinea. He said in Maprik recently (June 22 2022) that because of this potential, and in memory of founding Prime Minister the late Sir Michael Somare, the next Government would be formed in East Sepik. Present with the Prime Minister were East Sepik Governor Hon. Allan Bird (National Alliance), Angoram MP Hon. Salio Waipo (National Alliance), Maprik MP and Minister for Agriculture and Livestock Hon. John Simon (Pangu) and Pangu candidate for Wosera-Gawi Ronald Asik. Sir Michael was instrumental in the formation of both Pangu and National Alliance “East Sepik has the potential to become the ‘economic powerhouse’ province of our country,” PM Marape said. “This is why I will bring Government formation to here: Firstly, in memory of Sir Michael, and secondly, in memory of Sir Pita Lus. “This will be the 11th Parliament, and the first Parliament without Sir Michael and Sir Pita being alive. “This will be symbolic that the nation is now being passed on to the next generation.” PM Marape said formation of the new Government in East Sepik would also inspire the new generation of leaders to hold on to the lofty ideals of the founding fathers like Sir Michael and Sir Pita. He said his Government, over the last three years, had passed major laws to fight corruption and promised the people of Papua New Guinea that some prominent leaders would be prosecuted after the elections. These include the Independent Commission Against Corruption (ICAC), Whistle Blowers’ Act and Undisclosed Wealth Act. “What would be the point of Allan Bird and I growing the economy of the country when corruption is still prevalent?” PM Marape said. “We have managed to stifle corruption in the big way with passage of the three bills during the last term of Parliament. “Over the last three years, we have spent over K56 billion, which has grown the economy by K30 billion.” PM Marape said East Sepik’s economic powerhouse potential was in agriculture, through the vast Sepik Plains, and challenged the province to start growing rice on a large scale to reduce the huge K900 million rice import bill. “Over the next few years, and into the future, we want to grow our own rice for domestic consumption as well as export to Phillipines, Indonesia and the rest if the region,” he said. “Sir Michael, before his passing, said he had helped groom me up and asked me not to forget East Sepik into the future. “The way to achieve this is through economic independence. “I want every Papua New Guinean to have money in their pockets: Grow rice, grow cocoa, grow vanilla, look after cattle, bring in tourists, stop consumption of home brew, stop marijuana and other bad habits. “We are ready to take the country to the next level. “I want East Sepik to be an economic powerhouse no longer dependent on Waigani. “This is why I ask the people of East Sepik to send Allan Bird, John Simon, Salio Waipo and my Wosera-Gawi candidate Ronald Asik, Ambunti-Dreikikier candidate Richard Rafa and Wewak candidate Jim Simitab to Parliament. “ Article courtesy of PM JAMES MARAPE News Page