Photo: Hon. Kerenga Kua, Minister for Petroleum & Energy. Credit: Papua New Guinea Energy Summit & Exhibition Twitter Page
The Energy Sector of Papua New Guinea is just awaiting to be tapped into as it has the capacity to generate massive returns in revenue.
Gas projects such as The Papua LNG project and P’nyang Gas project are expected to bring in huge revenue into the country’s economy when they come into operation.
Not only will PNG be generating revenue from these upcoming projects but opportunities such as employment, infrastructure development, skills training, business ventures and small to medium spin off projects will also arise through these gas projects.
Minister for petroleum and Energy, Hon. Kerenga Kua has been at the forefront of boosting these projects into operation as early as possible without letting the construction phase of the projects to be delayed.
In his speech at the 4th PNG Energy Summit, the Minister stated that PNG is now ready to generate revenue from the energy sector.
He further stated that after the completion of the construction phase for the Total Energy Papua LNG Gas Project, which is to begin in 2024, the construction phase for the P’nyang Gas project will be scheduled to commence.
Kua said “Total Energy has already announced its Final Investment Decision (FID) for the Papua LNG Project which shows that the future of Petroleum and Energy resource development is heading in the right direction.”
Minister Kua also stated that PNG’s exports of Liquefied Natural Gas (LNG) will almost double when these two projects start LNG exports.
Minister Kua said, “Due to the ongoing demand of gas increasing in the European and Asian Markets, the two projects are set to generate more revenue into the country’s economy with our exports expected to double from the current 8.5 million tons per annum (MTPA) to 14 to 15 MTPA”.
He further stressed that Papua LNG is to reach its FID in 2023 and the first LNG export is expected around 2027.
“This will be followed by the FID and construction phase of the P’nyang Gas project by 2023” he said.
Developers also will allow a percentage of this gas projects for Domestic Market Obligation (DMO) “This gas will be used within the country mainly for power generation and other purposes such as Industrial use and LPG” said Kua.