• PNG Business News

PM Marape welcomes LNG Japanese Corporation

Prime Minister Hon. James Marape, MP recently welcomed representatives of the LNG Japan Corporation to Papua New Guinea.

During a recent meeting with this high-level delegation, PM Marape said PNG welcomes any investments in the Petroleum Sector and as Prime Minister; he was ready to give 100 per cent support if LNG Japan Corporation would create employment for Papua New Guineans.

“I will give 100 per cent support if you show me that you can create employment. I don’t mind giving you a tax-holiday; if you can create employment for our citizens,” PM Marape told the Japan Corporation delegation.

PM Marape stressed that his Government was determined to create cheap electricity for the whole country over the next 10 years adding that this was the whole reason why the National Government pushed for a minimum 10 per cent of any commercially viable gas found in the future.

“The Kumul Petroleum Holdings Ltd (KPHL) will pick up this 10 per cent and utilise it while the Government opted to create by-products from this gas through downstream processing. However; first and foremost, it is important to obtain cheaper electricity for all our citizens,” he said.

Also present at the meeting were the National Planning Minister Hon. Sam Basil, MP (who is responsible for Kumul Petroleum Holdings Ltd), Commerce and Industry Minister Hon. William Duma, MP and KPHL Managing-Director, Wapu Sonk.

Further, PM Marape encouraged KPHL Managing-Director, Mr Sonk to continue and enhance discussions with LNG Japan Corporation and also have constant dialogue with Ministers Basil and Duma in ensuring that both are fully aware on its progress.

Prime Minister Marape also thanked the LNG Japan Delegation President and CEO, Hiroshi Kawahara for leading a high level delegation to Papua New Guinea.

Brief facts:

  • LNG Japan Corporation plans to operate in Kikori, Gulf Province where a Special Economic Zone is planned to be built.

  • LNG Japan is studying feasibility of potential LNG-to-power projects in PNG, leveraging its long experiences in the LNG industry, including a small-scale domestic LNG sea transportation project in Indonesia.

  • It is also looking at producing methanol as a raw material for plywood manufacture, hence; contributing to downstream processing of logs.

  • LNG Japan Corporation, established in 2001, is a 50-50 Venture between two leading Japanese trading companies, Sojitz Corporation and Sumitomo Corporation.

  • LNG Japan, from the days of its predecessor, has over 40 years of experience in upstream development, financing, marketing, trading and shipping in the global LNG Industry.

  • LNG Japan and Kumul Petroleum entered into a joint venture agreement on June 7, 2017 (amended on August 2, 2018) to set up the unincorporated joint venture for marketing of spot and short-term cargoes from PNG LNG.

  • The company, together with JX Nippon Oil and Gas Exploration Corporation and Marubeni Corporation (Japanese consortium) and Kumul Petroleum Holdings Ltd entered into a Memorandum-of-Understanding on August 30, 2018, to jointly pursue any opportunities to participate in the Papua LNG Project, as equity participants and financiers.

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