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PM explains roles of resource companies

The National Gas Corporation is a downstream player in the oil and gas industry whereas Kumul Petroleum Holdings Ltd (KPHL) is an upstream one, says Prime Minister James Marape.

Marape explained this in Parliament when responding to questions from Madang Governor Peter Yama who sought clarification on the role of the gas corporation would play when the new oil and gas organic law, which was before Parliament.

Yama said the proposed organic law was structured in a way in which only KPHL and its subsidiaries were entitled to access and develop oil and gas resources in the country which left out the National Gas Corporation.

Marape explained that the National Gas Corporation is an entity that was set up under the Oil and Gas Act which operates as a vehicle for provincial governments to subscribe by investing to participate in the country’s resource projects.

He said the role of the corporation would not change and the government would not dilute its purpose.

“For the record, the National Gas Corporation is a vehicle by creation of law.

“Section 179 of the Oil and Gas Act has a provision where it establishes the National Gas Corporation,” he said.

“National Gas Corporation has a role to play.”

Marape said the gas corporation had a role to play especially in the country’s quest to secure more gas for the domestic market.

“As we secure more gas for the domestic market, National Gas Corporation can play that key role in ensuring that they become the vehicle that secures all these domestic market gas for local businesses and any other associate businesses,” he said.

Source: https://www.thenational.com.pg/pm-explains-roles-of-resource-companies/

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