Energy
PNG Business News
May 04, 2023
PNG Business News - February 27, 2023
Photo credit: International Trade and Investment Ministry of Papua New Guinea Facebook page Kumul Petroleum Holdings Limited (KPHL) signed a Memorandum of Understanding (MOU) recently with the Ministry and the Department of International Trade and Investment to establish a long-term collaborative relationship where KPHL will be the energy solution provider to support the development and operation of all the Special Economic Zones (SEZs) in Papua New Guinea (PNG). Minister for International Trade and Investment, Hon. Richard Maru during the signing said that securing reliable and affordable energy supply to the SEZs was a critical foundational input to the commencement and development of the SEZs. “Our country is known by most of the investors as one of the most difficult and expensive places to do business and one of the primary reasons is because we have very unreliable power and the most expensive cost of energy. Even the cost of producing goods in PNG is ten times more when we are competing with other countries like Thailand, Vietnam and Malaysia,” said Minister Maru. “The vision of the Marape-Rosso Government is clear, we want to replace all food imports, we want to process everything that we currently produce into final products, and we want to grow our exports, but we cannot do that without cheap, reliable and clean energy. Without innovative solutions to our electricity to bring the cost down and make power more reliable, we will never succeed as a country to develop this nation because we are living in a global community where we need to compete with the rest of the world. It is our job as the Government to make sure that the country has cheap and reliable and clean energy. The time has come for us to stop pretending that everything is well, accept the responsibility and look at organizations like KPHL who have the mandate to provide energy so we can attract investors. We can dream about all the big projects, but they will only be dreams unless we find real solutions to electricity and all the other factors that attract investments and investor confidence in our country. There are other inputs too like the freight cost but for now electricity is one of the biggest hinderance to our economic growth and to our ability to process and to compete with the rest of the world,” added Minister Maru. Minister Maru said the Ministry and the Department of International Trade and Investment had made a deliberate choice to partner KPHL as their partner of choice to help them find energy solutions to power up all our economic zones into the future because they have the financial muscle, they have technical competence, they have energy, they are the producer of energy, and they have a record where they constructed and operated a gas fired 58MW power generation facility in Port Moresby under a 50/50 ownership arrangement with an experienced international operator at zero loss of time and zero incidents. “KPHL has already started to be a player in the energy market, not only to produce the resource but to supply electricity. Our country needs innovative solutions providers and we have decided to partner KPHL because we have the agenda to announce the SEZ Masterplan by May this year,” said Minister Maru. Minister Maru said the Ministry and the Department of International Trade and Investment was determined to partner KPHL to help them find solutions for Madang and East Sepik Province as a matter of priority. “I am looking forward to working with the Board and Management of KPHL to start with these two provinces where we have the proposed PMIZ and the Sepik Plains SEZ,” said Minister Maru.
PNG Business News - November 21, 2022
According to an official, the National Energy Authority is enforcing stricter regulations on the energy and electrical industries in Papua New Guinea, and experts must hold a licence to practise. In Kavieng, New Ireland, recently, acting managing director Ronald Meketa made this statement at the start of the first electrical licensure exam for the New Guinea Islands conducted under his supervision. “Power-generating firms and plants will have to adhere to industry best practices and technical standards when setting up operations, so professionals in the electrical sector must be certified or have a licence to be able to carry out installation work in PNG,” he said. The initial 29 electricians took their two-day electrical exams under test subjects ‘Theory of Applied Electricity’ and ‘PNG Wiring Rules’. “We will continue to conduct these examinations in the other regions of PNG because it is of importance that we have well equipped and certified professionals carrying out electrical installations in the energy sector,” Meketa said. He stated that candidates taking the exam had to meet requirements such as being at least 19 years old, having finished an apprenticeship program, holding an electrical trade certificate, having graduated from electrical engineering school, and having at least five years of work experience. “The electrical licences are recognised internationally and have to be renewed after every seven years,” Meketa said. “While all overseas electrical professionals will also be required to show the same certification to work in PNG.” Meketa said that his organisation was working to enlist additional alternative power producers to assist address the ongoing power disruptions that “For better management of power distribution, we have to have separate power producers and distributors,” he said. “The authority is on the path to rectifying this issue by engaging a wider stakeholder approach which involves provincial governments and district development authorities.” Reference: The National (16 November 2022). “Energy sector lifts standards”.
Paul Oeka - November 11, 2022
Minister for Environment, Conservation and Climate Change and Lufa Open MP Hon Simo Kilepa is determined to connect the Lufa District in Eastern Highlands Province with reliable electricity supply under the PNG Electrification Partnership (PEP) Activity Program fully funded by the United States of America Aid (US AID). The first term MP plans to connect his district with reliable electricity supply as it will boost internal generating economic activities and better alleviate poverty in rural areas of concern in his district and Eastern Highlands Province as a whole. Kilepa said that he held talks with senior executives of the USAID PEP Team concerning the planned off-grid electrification project. The plan which is environmentally friendly positively reflects the Environment and Conservation ministerial portfolio he is leading in the Marape-Rosso Cabinet. After his discussions Kilpea said that his district will prioritise Clean Renewable Energy alternatives which is specifically priotised under Solar Energy and Hydro Electricity, respectively. Kilepa confirmed that this is a Public Private Partnership Program where USAID is providing technical support in partnership with district and provincial governments for the purpose of project fundings. According to the US AID PEP Activity Program, only about 13% of Papua New Guinea’s total population has reliable access to electricity which is a major developmental obstacle. The USAID PEP Activity is a developmental initiative to focus on the accessibility of electricity to rural areas which was made possible during the 2018 Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in Port Moresby when the United States (US), Australia, Japan, and New Zealand, entered into the PNG Electricity Partnership (PEP), which aims to increase PNG’s electricity access to 70 percent by 2030. Minister Kilepa is committed to ensure the people of Lufa District have reliable electricity supply using Clean Renewable Energy methods of generating electricity.
PNG Business News - October 21, 2022
Photo: Chairman of MRA board Mr Benny Kimisive cutting the ribbon to officially commission the solar project. Present is OIC Mr Nathan Mosusu and from PPL Mr Roy Daggy. The Mineral Resources Authority (MRA) will save about 60 percent of its annual energy bills averaging about K650, 000, with the launching of its new Photo-Voltaic (PV) solar power system. The PV solar power system was launched today at the Mining Haus by the Chairman of the MRA Board, Mr. Benny Kimisive and Officer-In-Charge (OIC) Nathan Mosusu. The grid-tie system installed on the roof-top of the Mining Haus has a capacity of 162 Kilo Watt. It will be used as a power source which will operate concurrently with the PNG Power Limited (PPL) grid, to supply the building’s power demand of about 250 KW. The system is designed to operate at optimum with the balance of the building’s power demand to be supplied by the PPL utility grid. This will have a great effect on the final electricity bills. The project has been installed in partnership with PNG Power Limited (PPL). It is part of PPL’s project called the ‘Roof-top solar photovoltaic pilot project. Mr Mosusu while officiating at the event, said the project is a demonstration of the MRA’s commitment towards achieving the government’s national strategic development plan of generating 25 percent of electricity from renewable resources by 2030. He said we had been relying on fossil fuel for electricity and that this was the beginning of a paradigm shift towards doing things smarter using greener technology, and solar energy is a step in the right direction. Mr. Mosusu said in 2018 alone, PNG imported about 42, 000 barrels of fossil fuel oil, adding that the MRA’s new power source would contribute to the reduction in these statistics. The OIC said the biggest share of the 42, 000 barrels of oil, would no doubt, be attributed to the power requirements of the mining industry. “As the regulator, we at MRA must set the standards in reducing our carbon footprint, so that the industry can hopefully follow suit,” said Mr Mosusu. Chairman of the MRA Board Benny Kimisive, said that the board had been supportive of this project since inception adding that this would greatly reduce MRA’s power cost. He said there were more of such projects in the pipeline and that the board would continue to support the MRA’s management in achieving these projects. PNG Power Limited CEO Obed Batia said in a statement that the initiative of Roof-top Solar PV project is part of the organisation’s Pacific Renewable Energy Advisory Project, which is supported by the International Finance Corporation (IFC). Mr Batia said under this project, there were 10 organisations were participating including MRA. He said MRA was the first participant to have successfully installed the system.
PNG Business News - October 17, 2022
To promote private investments in Papua New Guinea's energy industry, the US government, through the US Agency for International Development (USAID), published an investor guide for the sector. The handbook was released in Port Moresby by USAID and the Investment Promotion Authority (IPA) in conjunction with the USAID-PNG Electrification Partnership (PEP) Activity. The handbook offers prospective investors step-by-step instructions for the creation and execution of energy projects as well as an overview of the country's economy, political environment, regulatory framework, investment climate, and energy sector dynamics. It contains information on energy projects as well as a checklist of demands from pertinent government entities. “This is the first energy-specific sector guide for PNG, and USAID-PEP is pleased to be in partnership with IPA in this collaboration,” USAID-PEP senior PPP and project finance adviser Julinette Bayking said. “It serves as an information tool for investors to follow for development and implementation of energy projects.” Leonila Gutierrez, a USAID energy policy specialist from the Philippines mission, and IPA managing director Clarence Hoot were also there to witness the launch. As seen by the collaboration on this guide, Gutierrez stated that USAID looked forward to working with IPA in building partnerships as a strategy to help the government enhance electrification throughout PNG. Reference: The National (10 October 2022). “US agency launches guide for energy investors.”
PNG Business News - September 28, 2022
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.
Paul Oeka - September 26, 2022
The three-day Papua New Guinea Energy Summit and Exhibition that ended last week focused on strengthening coordination roles among stakeholders and industry players by promoting government and private sector engagement to improve and reaffirm the huge potential of PNG’s Energy Sector. This was the first time the summit was mainly dominated and driven by the Energy division. The summit highlighted the challenges and factors that could determine the right pathway for PNG’s Energy sector to align its direction and leadership priorities. Facilitated by Kumul Petroleum Holdings Limited, the summit was regarded as a momentous occasion to identify key challenges and opportunities for addressing, improving, and accessing the Energy sector in the country. Kumul Petroleum Holdings Ltd. Managing Director, Wapu Sonk, stated in his closing remarks that he was quite pleased with the topics and issues discussed and highlighted throughout the summit, mostly in development and investment opportunities regarding the energy sector. “It was always about mining and petroleum, and now it is time to focus more on energy because energy is the future for development in the country,” said Mr. Sonk. Participants at the summit included heads of departments, development partners, the private sector, institutions, civil society organizations, potential investors, and individuals. With up to 30 exhibition booths that consisted of different organizations and stakeholders in the Energy sector, the summit was commended as an exciting experience in terms of networking and showcasing their products and services. Climate change was also a big topic discussed at the summit regarding PNG’s vulnerability to climate change ramifications. This was stated by key speakers as being a global concern, but PNG must be aligned with climate change adaptations and mitigation while at the same time looking at developing its domestic energy policy. During the summit, discussions also indicated that investors and service providers were taking proactive steps to venture into areas within the energy sector where the government’s attitude and approach were restricted by policy guidelines. The sentiments shared by Mr. Sonk during his closing remarks also indicated the lack of government participation. Mr. Sonk said: “My biggest regret is that the government must sit in such summits and attend to discussions and take note of how policy should be implemented and where the industry is headed.” The summit was endorsed by the Ministry of Petroleum and Energy and financially and technically supported by KPHL, Exxon Mobil, Santos, Total Energies, MRDC, Twinza, Vodafone, ANZ, High Arctic Energy Services, JX Nippon Oil & Energy, Kina Bank, and Puma Energy. In closing the summit, Mr. Sonk said: “I hope the next energy summit will be much bigger and I each and every one of you who has traveled into the country or are residents here for attending.”
The recently established National Energy Authority was one of the major participants of the PNG Energy Summit and Exhibition 2022. NEA’s Acting Managing Director, Mr. Ronald Maketa said the highlight of the NEA is to support the National Governments Energy Policy and its stakeholders to realize the potential of PNG’s Energy industry. He stated during his speech that “We want to improve access to this (Energy) sector by having the right regulatory reforms for foreign direct investment by engaging with stakeholders to find the right approach for the direction of the Government” “Investors must have confidence in the government, coordination by the government has been lacking in the energy sector for the last 40 years”. He said. He added that “Renewable resources such as Geothermal and hydro energy are becoming huge potentials that is why we are aligning our development policies with the Connect PNG Infrastructure program. We want to open up small power systems in provinces and small centers so independent power producers and investors can come in” The government already has an Energy policy in place, the role of the policy is to set the pace for service delivery in the energy sector. The implementers of this policy will be the Petroleum and Energy ministry and the National Energy Authority, the two are working closely with industry players and stakeholders to see that the policy is effective and is putting out desired outcomes. Explained Maketa. Apart from this he further stated that there is a global demand for energy so policy has to be allowed to be shifted to consider this changing dimensions. Reliability and affordability should be prioritized for key areas such as Renewable resources in the energy sector this may include Solar, Hydro, and Wind and Geothermal energy. The country is blessed with a lot of rivers and waterfalls to use for this form of Energy, this has huge potential to create opportunities for investment. Energy for domestic use must also be considered, Oil and gas can be expensive even though we are producing it. We must teach ourselves to use clean energy in order to improve ourselves.
PNG Business News - September 26, 2022
Photo credit: Papua New Guinea Today According to Richard Maru, the Minister for Trade and Investment, high electricity costs are a significant barrier to trade and investment in Papua New Guinea (PNG). With approximately 13% of the population having access to electricity, PNG is one of the least electrified nations in the world due to its inconsistent, costly, and limited supply of energy. “We continue to rely on the expensive diesel generators when we have vast cheaper and cleaner energy options available- the rivers (for hydro projects) and the sun (for solar farms),” said Minister Maru. After speaking with a team from the Snowy Mountains Engineering Corporation (SMEC) regarding a feasibility study into the Sowom Hydro Project in East Sepik Province, Minister Maru brought up this issue. The possibility of the hydro project along the Sowom River was investigated by SMEC in a preliminary high-level feasibility assessment in 2014. “The Marape-Rosso Government is keen to have a full feasibility study done on the viability of one or two hydro projects along the Sowom River,” said Minister Maru. Currently, diesel generators at Wewak and Maprik supply the approximately 10 megawatts of energy needed in the East Sepik Province. “It is difficult to attract major investment projects in East Sepik Province without reliable and cheaper power. The Greater Sepik Region cannot continue to depend on expensive diesel generators for electricity,” said Minister Maru. In order to conduct a thorough feasibility assessment on the Sowom Hydro Project, Minister Maru asked SMEC to put up a proposal and a costing. Before the year is up, he wants the Feasibility Study to be finished. “I have briefed the Governor of East Sepik Province on this study, and he is very supportive. The availability of cheap and reliable electricity is one of the highest challenges for the entire Greater Sepik Region which must be solved before the region can market itself as a serious investment destination, along with other provinces like Manus, Gulf, West Sepik, and New Ireland who continue to depend on very expensive diesel-fired generators. A combination of hydro, solar energy, and gas-fired electricity supply is the way to go for these provinces,” said Minister Maru. In order to develop a more affordable and dependable electricity supply to support economic growth and provide cheaper and more accessible electricity to the majority of the population in the country, Minister Maru stated that he will be working closely with the leaders from other provinces and districts across the nation. “This will also be a major business opportunity to the landowners of the lands where such projects will be located in,” he said. Reference: Papua New Guinea Today (20 September 2022). “Sowom Hydro Project to be PNG Government's Priority : Maru”.
Photo credit: Ronald Meketa LinkedIn Page The National Energy Authority has been in the transition for the last two years and is set to be fully operational by 2025. The NEA is planning to conduct its consultation workshop with intergovernmental agencies to guarantee they are fully functioning in three years, according to interim managing director Ronald Meketa. He stated that the tiny power system and having the appropriate policies in place will now be the NEA's main priorities. “We want to have PNG Power Ltd to be more focused on the main key grids that are a revenue-generating business for them, including Port Moresby, Highlands (Ramu Grid), and Gazelle in East New Britain,” he said. “We already have the key draft policy in place. “We should be running the consultative workshop with intergovernmental agencies to make sure we are operational in three years’ time. “We want to open up the small power system in small centres so the free independent power producers investors who are interested can come in. “We can open up the market for competition in that space and that will be embedded in some of the reviews we are doing.” Given that more power system businesses are operating within the 10km zone, Mr. Maketa stated that they would also be looking at the definition of a 10km main grid from the off-grid location. “We will look at how we can improve in that space and open up opportunities as there is a need to address the reliability issues that we have,” he said. Mr. Maketa acknowledged that there is still more to be done to advance the industry. “We should have the small power system regulation up and running by year-end, hopefully in the next energy session will have good answers for everyone,” he said. Given the dire circumstances the nation is in, he said it is critical that various energy sources invest in infrastructure. “We can have the independent power producers and allow competition in that space so that it gives ample time for PNG to look at its transformation strategies and to participate meaningfully in the transitional and to go into gas power,” he said.He claimed that the National Electricity Administration (NE as the National Development Bank, the World Bank, and others. Reference: Wohi, Lorraine. Post-Courier (22 September 2022). “National Energy Autority To Be Operational By 2025”.
Photo credit: MRDC Dirio Gas and Power’s next project will be to supply 66 megawatts gas fired power station gas for the Ramu Grid. Speaking at the PNG Energy Summit in Port Moresby, Mineral Resource Development Company (MRDC) Chief Operating Officer John Tuaim said Dirio is currently providing a 45 megawatts (MW) gas-fired power station for the Port Moresby grid, and construction on the following project is anticipated to start in early 2023 for the Ramu Grid. The first Dirio project outside of Port Moresby, according to Mr. Tuaim, is already powering the city. They are now looking at the second project, which will be up in Hela Province and deliver 66 MW while also connecting to the Ramu Grid and servicing Southern Highlands Province. “Dirio will be using the same technology and same landowner groups for the first project in the next project up in Hela and we have already signed a Power Purchase Agreement (PPA) with PNG Power Limited,” he said. “We will also utilise the same strategic staff and local companies to do the next project as well. Once it is done it will provide a cheaper cost of generation power for PNG Power as well.” He stated that Dirio is anticipating a long-term solution for PNG to offer 283MW gas-fueled generation to 12 places around the nation following the project up in Hela, which would bring the advantage of PNG's gas deposits to the entire country. According to Mr. Tuaim, construction on that project is scheduled to begin in 2023 since the National Executive Council (NEC) has already given its approval and because a PPA with PNG Power Limited at 50% of current costs is still waiting. Reference: Kamus, Maxine. Post-Courier (21 September 2022). “Dirio’s Next Project”.
PNG Business News - September 22, 2022
Picture from left to right: Dr. Genevieve Nelson, Mr. Luke Liria, Mr. Peter Koim, Mr. Francis Kunuma and Mr. Kori Chan One of the highlights of the second day of the PNG Energy Summit discussions on the 21st of September was how the energy sector could contribute toward local content and the development of local small to medium enterprises for the future. Present for the panel of discussions were Mr. Kori Chan, Managing Director of Total Waste Management Group (TWM); Mr. Francis Kunuma, Cofounder of Nares Engineering Ltd.; Mr. Luke Liria, Corporate Affairs Executive General Manager, Kumul Petroleum Holdings Limited; Mr. Peter Koim, Director PNG Gas Projects Coordination Office; and the moderator, Dr. Genevieve Nelson, Chief Executive Officer of Kokoda Track Foundation. Both Nares Engineering and Total Waste Management Group being 100-percent locally owned companies participating in the LNG project, elaborated more on the services they provided. TWM is currently the leading total waste management and environmental service provider in PNG, while Nares Engineering provides non-destructive testing (NDT) that includes x-ray, ultrasonic, magnetic particle, dye penetrant, and macro testing methods, as well as statutory inspection services. Mr. Chan and Mr. Kunuma, in response to a question by Dr. Nelson on the challenges they faced as local companies, asked the government to explore investing in the future of a skilled trained workforce, as to correlate to international standards and meet the demand in the energy sector in terms of skills and development. Mr. Liria spoke on the current achievement of Kumul Petroleum’s social investment projects in the country. These include the training of skilled technicians through its Kumul Petroleum Academy, in which ExxonMobil PNG is a major sponsor for on-the-job employment and skills. The other proposed project is the steel fabrication facility and construction training academy, which will employ more Papua New Guineans. Another major project includes support for health and sports; so far K65 million has been spent on cancer facilities in Mendi, Angau, and Port Moresby General Hospital. Closing off the panel discussions, Mr. Koim spoke of the importance of the government providing an avenue for landowners to participate meaningfully in the energy sector. As the resources are currently nonrenewable, both the landowners from the gas project areas and different stakeholders must participate in its development, he said.
PNG Business News - September 21, 2022
The fourth Papua New Guinea Energy Summit and Exhibition commenced on the 20th of September 2022 at the Hilton Hotel and will end on the 22nd of September. The theme of the summit is "A New Dawn for PNG's Energy Sector Development." The host sponsor for the Summit is Kumul Petroleum Holdings Limited, whose Managing Director Wapu Sonk gave the opening remarks. Mr. Sonk stated that PNG is blessed with both renewable and non-renewable resources and that the proper development of these will underpin national development for many years to come. Representing the government, Minister for Petroleum and Energy Hon.Kerenga Kua, in his keynote address, stated that PNG is an exporter of liquefied natural gas. This, in the long run, will prepare the country for the future to be viable when there will be customers for PNG's green energy export. Mr. Kua also elaborated that getting electricity to remote areas is not easy given the topography of the country, and PNG's electrification reach is poor compared to other countries. Major players in the energy industry, including the National Energy Authority (the regulatory body of the state), gave their presentations as well to help potential investors in the country work cohesively with different stakeholders, in line with the government's policy and existing national content plan. Existing energy developers and partners such as ExxonMobil PNG, Santos, MRDC, Twinza Oil, High Arctic Energy, and Chiyoda also gave detailed presentations. One of the key areas highlighted by all of them is that they are looking forward to advancing in community initiative projects, including sports, education, health, carbon emissions projects, and utilizing technology that will enhance green energy in the future. Besides the energy developers, Vodafone PNG was present as well for a presentation on the use of telecommunication as a major player in the energy industry in terms of technology while working remotely in the terrains of Papua New Guinea. A total of 30 exhibitors were enlisted for the exhibition, including: Aspen Medical AG Energy Limited American Chamber of Commerce ANZ Bank Limited- PNG Atlas Steel PNG ExxonMobil PNG Limited High Arctic Energy Services PNG Limited JX Nipping Oil and Gas Exploration Corp- Japan Kina Bank Kumul Petroleum Monier Limited MRDC MTIS Group (Asia Pacific) MVIL NACAP PNG Limited National Energy Authority Nambawan Super Pacific International Hospital Pacific MMI Insurance Limited PNG Business News PNG Internal Revenue Commission RTI International- PNG Electrification Partnership Santos Limited Telikom Thai Benkan Company Limited Total E&P PNG Limited Touchstone NDT Limited Twinza Oil Vodafone Papua New Guinea Westpac
PNG Business News - September 01, 2022
The clean green energy projects initiative being championed by Papua New Guinea Prime Minister James Marape moves one step closer to take-off as he met the second time this month with Fortescue Future Industries South-East Asia President Allard M. Nooy in Port Moresby today (August 29 2022). The Prime Minister used this opportunity to connect the company directly to the Government’s working team to get the project off the ground, which he wants to see happen within 2022 and 2023. The meeting follows from the first PM Marape and Mr Nooy held in Singapore earlier this month during the PM Marape’s short visit to the country some days after his election. At the meeting this morning, Prime Minister Marape reassured Mr Nooy that he stood ready to speak at the high-level arena, while directing the State Negotiating Team to work with the company in processing the mechanisms needed to get the first project off the ground. The Prime Minister also committed the relevant agencies of the State to assist FFI progress this work immediately. PM Marape then came in strong with his reassurance that at the high-level, he would speak with the founder and owner of the company Dr. Andrew Forrest and proceed in making connections to markets in countries that have existing bi-lateral relations with Papua New Guinea. He highlighted Papua New Guinea’s strategic location in relation to the economies of both ASEAN (Association of South East Asian Nations) and APEC (Asia Pacific Economic Cooperation) nations, many of whom already have existing bi-lateral ties with PNG. He said with very high populations in these countries and PNG having all the right conditions to produce energy and food, the country was appropriately placed to contribute to both energy and food security in the region. PM Marape said: “At the high-level, if you want someone to market these things for you, our Government can market for you using the bi-lateral connections. We have strong relationship with China since 1975; with US at the bi-lateral level, with South Korea, India, Indonesia, Malaysia. These are big economies. “We are rightly placed to advocate for green energy. That is our competitive advantage. African nations do not have this; they are too far but we are right here. And we are here to support you. “We are ready to assemble a team. So by 2023, we not in concept anymore but get some project going.” PM Marape once more reassured the company on the opportunities available in Purari River, Gulf Province and the geothermal springs of West New Britain Province where the company has already established working sites based under two heads agreement signed between the State and FFI last year. The meeting, held at the Prime Minister’s office at Sir Manasupe House, was attended by Minister for Petroleum and Energy Hon. Kerenga Kua; Governor for West New Britain, Hon. Sasindran Muthuvel; Member for Rabaul, Hon. Graham Pinau Rumet; and Head of the State Negotiating Team Dairi Vele. President Nooy was accompanied by FFI PNG representative, Andy Hetra. Article courtesy of PM James Marape News Page
PNG Business News - July 11, 2022
EU-STREIT PNG preparing to install micro grid solar panels in selected public facilities to support cocoa, vanilla and fisheries entrepreneurs as well as livelihoods of rural communities. To create an enabling environment for cocoa, vanilla and fisheries entrepreneurs and to generate real possibility for economic growth that will enhance the livelihoods of rural communities, the UNDP under the EU-Funded Joint UN STREIT PNG Programme, is closing in on preparatory works with stakeholders to install solar generated clean and renewable electrical energy in the Sepik region of Papua New Guinea. In a one-day workshop organised by the Programme in Wewak, East Sepik Province, on Thursday 23 June, participating stakeholders from Division of Education, Sepik Seventh-day Adventist (SDA) Mission, Division of Health and Catholic Health Service came together to discuss and gauge feedback from beneficiaries on the installation of micro grid solar systems in six identified facilities. The selected recipients in East Sepik Province are Taul Community Health Post in Turubu area of Wewak District, Nagum Adventist Secondary in Yangoru-Saussia District and the Catholic Health Service-run Dagua Community Health Centre along west coast highway in Wewak District. The beneficiaries in Sandaun Province are all located in Vanimo-Green District namely Don Bosco Technical School, Vanimo Secondary and Baro Community Health Post. These education and health facilities are located in areas with limited or no access to grid-connected electricity. Opening the workshop was Head of FAO Country Office in Papua New Guinea Mr Bir Mandal who was visiting Wewak to support the programme to expedite the programme implementation and enhancing partnerships with East Sepik Provincial Government. Mr Mandal draw attention to the global scenario on energy access and what this means for the Greater Sepik Region and PNG. “A third of the 2.6 billion people in the world still do not have access to safe, clean fuels and technologies for cooking or heating their homes, at significant health, social and environmental costs. In PNG, only 15% of the total population of about 8 million have access to grid connected electricity.” He added: “For change to occur, we need to reset our energy systems and put people into the centre – ensuring that these systems are cleaner, more secure, more resilient, and totally inclusive.” “Under the Programme, we’re working together with relevant Government of PNG (GoPNG) agencies at the national level and our target provinces to ensure communities in the agri-value chain get connected to electricity via renewable energy sources. This initiative will contribute to the GoPNG’s energy access target as outlined in the Medium-Term Development Plan III and various development plans, policy frameworks and regulatory instruments,” said Mr Mandal. Despite the disruption in the global supply chain by the Pandemic which has put a strain on the progress of this effort, UNDP’s Project Manager, Ms Karen Anawe, said, “I’m pleased to announce that preparatory works are now underway to ensure we assist the government to close the energy access gap by promoting clean energy and a transition towards a low carbon economy in our focus areas.” Ms Anawe said the meeting also discussed sustainability and ownership arrangements of these micro grid solar systems. For the recipients, unreliable electricity supply has been an ongoing dilemma for years, hence the support will give confidence as well as strengthening their operations to service better the rural people. “Nagum Secondary is a recipient of this support and I like to say thank you to the European Union as financiers of this impact project, not only for the school, but for the community at large. We’re glad that the solar project in the future will gather for students from the Sepik provinces, and also from Madang and Morobe,” said Mr Jeffrey Saigomi, Secretary for Sepik SDA Mission. For Dagua Community Health Centre, serving sick patients after hours or in the night has been an concern for some years because of no proper lighting. “This is a big help to us, especially for the people living along west coast including Dagua LLG. The solar power will provide sufficient lights for sick patients in our wards. It will also help with some emergencies we conduct after hours and in the night like attending to deliveries and injuries from road accidents mainly,” said Mr Ignatius Burr, Health Extension Officer. The rural health facility services some 100,000 plus rural population of Dagua LLG including those from Boikin LLG. Despite being handicapped in its operations, the facility is known for being the first to attend to some very serious road accident injuries along the west coast highway before referrals are made to Boram General Hospital in Wewak Town. A feasibility assessment for renewable energy power was conducted in early 2021 for the region, and six facilities were identified for solar energy installation. The UNDP under the EU-STREIT PNG Programme supports development and improvement of renewable energy to create an enabling environment that will embrace development of the three targeted value chains which thousands of rural communities in the Sepik Region depend on to sustain their livelihoods. The EU-STREIT PNG, as a UN Joint Programme (FAO as 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. Being implemented in close cooperation with the National and provincial government institutions, research entities, civil society organizations, and private sector enterprises, 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.
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