• PNG Business News

Pasca Investment To Attract K1.8bn Capex Investment

Twinza’s Pasca condensate and gas field project is set to provide various returns to the economy, beginning with a total capital investment set at K1.8 billion (US$624m).

In a statement released by Minister for Petroleum and Energy Kerenga Kua yesterday stated that according to an ACIL Allen Economic Impact Report of 2018 the project can be expected to generate a range of positive economic impacts at national, regional, and local levels.

Its other benefits to include increase national gross domestic product (GDP) and export earnings and would provide a long-term boost to government revenues while creating minor short-term employment opportunities during the construction phase and long-term opportunities during the production phase.

The minister further indicated it should also provide a catalyst for further resource development in the Gulf Province by providing third-party access to stranded gas resources for processing and export via the Pasca A platform.

“The report also suggests the Pasca A platform could facilitate further projects by providing a hub to provide a lower entry cost for other undeveloped fields and importantly would provide a source of local supply of Liquefied Petroleum Gas (LPG), potentially reducing reliance on LPG imports and increasing levels of competition in domestic LPG supply.

“There may be opportunities to grow the LPG market in PNG by offering a more competitive alternative to diesel fuel for power generation for delivery into the power grid and for off-grid mining and manufacturing sites.

The report further states the potential direct benefits offered by the project are expected to flow from: capital investment and recurrent expenditure in drilling operations, gas/liquid processing and support facilities; construction and operations employment; and direct cash flows to governments in the form of taxes, royalties and other charges, and returns on equity participation.

“The direct impact of the project is projected to deliver capital investment of US$624 million (K1.8 billion) in real terms over the life of the project.

“Recurrent operating expenditure, including a significant level of local spending on support services, is expected to average US$41 million (K116 million) per year over the life of the project.

“Further returns to government may arise from equity participation in the project.

As the first offshore petroleum development in PNG, the project could provide a focus for ongoing involvement by international players in offshore oil and gas developments that would help to attract investment and development in years to come.

“This is all very encouraging for our country and I look forward t o a close working relationship with the developer Twinza and the Gulf provincial government,” added Mr Kua. Continue reading at https://postcourier.com.pg/pasca-investment-to-attract-k1-8bn-capex-investment/ | Post Courier

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