Ok Tedi Mining Limited (Ok Tedi) is pleased to announce the signing of a non-binding gas supply term sheet with ArranEnergy, a subsidiary of Trans Wonderland Limited (TWL), to purchase gas from its Stanley Gas Fields in Western Province.
This marks a major step toward the company’s plans to achieve its Growth 2050 Energy Transition Strategy and decarbonise its operations.
Speaking at the signing ceremony, Ok Tedi Manager for Energy Transition Anton Safronov said that the signing is a significant milestone for Ok Tedi and the first of many steps to be taken as the company work towards decarbonising our operations under its Growth 2050 Strategy.
“This event signifies more than just our decarbonisation targets—it also reflects our commitment to using local products and creating more employment opportunities for our people," Safronov said.
Ok Tedi Managing Director and Chief Executive Officer Kedi Ilimbit said “PNG has not really developed the liquefied natural gas (LNG) supply for its domestic market. So Ok Tedi, being 100% PNG-owned, is happy to be the first to enter this segment with Trans Wonderland and ArranEnergy. We will now generate power and drive trucks using gas from the Stanley LNG Project.”
Ilimbit reiterated Safronov’s sentiments on reducing Ok Tedi’s carbon footprint, while highlighting the need to de-risk the business for the future.
He said Ok Tedi’s supply of imported fuel—especially diesel for its operations and electricity generation—has always depended on river levels along the Fly River. The Stanley LNG Project now provides an alternative energy source, allowing Ok Tedi to transition to cleaner, locally produced gas with a reduced carbon footprint and lower costs.
Ok Tedi’s current thermal generation produces 60 megawatts (MW) of power for daily operational consumption.
Ilimbit also noted that plans are in place to further enhance hydro generation facilities and to expand the use of gas across the company’s mobile fleet.
The Stanley LNG Project will be instrumental in decarbonising Ok Tedi’s operations and supporting a more resilient, sustainable future for the company and its stakeholders.
Key benefits of the Stanley LNG initiative include:
- Supporting Ok Tedi’s decarbonisation journey by enabling a transition from diesel to locally sourced natural gas, in line with Papua New Guinea’s climate ambitions.
- Improving operational resilience by reducing reliance on diesel—especially during periods when river transport is disrupted—and ensuring a stable, local energy supply.
- Positioning Ok Tedi as an industry leader in energy and emissions efficiency, with performance already ahead of peer mines in the country.
- Serving as one of the three key pillars of Ok Tedi’s decarbonisation strategy, alongside hydropower expansion and electrification of mining fleets, as it works toward achieving its long-term goal of carbon neutrality by 2050.
TWL Managing Director Larry Andagali expressed excitement about the prospect of selling processed gas within PNG, as opposed to focusing solely on exports.
“The next 50 years are looking brighter, and this partnership signifies better things to come. We have a vast natural gas resource, but the question is: how can we best add value to it for our people after processing? Our answer lies in supplying the domestic gas users’ market," Andagali said.
“We thank Ok Tedi for this partnership and hope that more businesses in the country will follow suit to ensure the sustainable use of our natural resources for an improved quality of life for all our people in PNG," he added.
Ok Tedi, being 100% PNG-owned, remains committed to responsible mining and to operating with excellence to deliver sustainable legacies for its stakeholders.
Earlier, OTML and the National Energy Authority (NEA) have signed a Memorandum of Agreement (MoA) to advance the Lighting Up the West (LTW) initiative—a transformative program aimed at expanding access to reliable, affordable, and clean energy across Western, West Sepik, and East Sepik Provinces.
The MoA, signed by Ok Tedi Managing Director and Chief Executive Officer Kedi Ilimbit and NEA Managing Director Ronald Meketa, establishes a framework for regulatory cooperation, licensing, and stakeholder engagement to deliver rural electrification through decentralised renewable energy (DRE) solutions in the short to medium term, and hydropower in the long term.
The initiative aligns with Papua New Guinea’s national goal to achieve 70 percent electricity access by 2030 and 100 percent by 2050, prioritising renewable energy sources such as solar and hydro.
Ok Tedi, through its subsidiary Ok Tedi Power, will lead the deployment of DRE solutions to anchor communities, with feasibility studies currently underway in Western, West Sepik, and East Sepik Provinces. The program is designed to deliver social, economic, and environmental benefits, including improved quality of life, local enterprise development, reduced emissions, and enhanced energy independence.
