Dirio Power Plant Launch Moved To November
The current pandemic has delayed completion and delivery of Dirio Power’s key infrastructure asset, the switch yard construction.
In response to queries regarding the delivery of the project that was set to officially launch in July this year, Mineral Resources Development Company CEO Augustine Mano confirmed on Wednesday this week.
“The switch yard was ordered from Italy, where it is manufactured. We had planned to have it installed for a launch in July this year. Unfortunately, the lockdown in Europe and other parts of the world early this year following the Covid-19 outbreak prevented the transport of the equipment from Italy to PNG.
“We have now rescheduled the launch to November this year. We hope some level of normalcy is restored in the 4th quarter of this year, so the equipment is transported here to be installed and launched,” Mr Mano said.
Dirio proposes to supply Port Moresby with 45MW of power using natural gas purchased from the PNG LNG Project.
The company signed a Power Purchase Agreement with PNG Power Ltd in September 2019, agreeing to supply electricity at a price lower than other third party suppliers, aiming to influence reduction in tariff for electricity users in the capital city.
“The economic benefit to everyone, businesses and households, from the availability of cheap and reliable power is immense. I hope we can launch in November and not delay this project any further,” Mr Mano said.
Dirio Power and Gas Ltd are 100 per cent owned by gas area landowners in the PNG LNG Project and their provincial governments.
Their undertaking to supply power to Port Moresby will cost K250 million, which includes the cost of the turbines, construction of transmission lines and the switch yard.