Twinza Oil signs deal
Gulf will have access to electricity generated from the Pasca offshore oil and gas project.
This followed the signing of a deal between Pasca’s operator Twinza Oil Ltd and the Gulf provincial government in Port Moresby yesterday.
The agreement spells out potential business relations both parties would venture into during the project.
The Pasca gas and condensate which will be the country’s first offshore project is located 95km from Gulf’s coastline and 265km west of Port Moresby.
Twinza Oil’s executive chairman and chief executive officer Ian Munro said the firm looked forward to making a difference to the country in terms of power generation and also domestic market obligation.
Governor Chris Haiveta said the provincial executive council (PEC) established two entities with the intent to take part in investment opportunities created by resources projects.
“In the oil and gas sector, Gulf provincial government (GPG) is pursuing business projects through the national government goals of National Content Plan (NCP) and Domestic Market Obligation (DMO).
“After months of research, discussions and negotiations, GPG and Twinza Oil Ltd will now formally enter into a memorandum of agreement to develop a power project to supply electricity sectors such as fisheries, forestry, agriculture (cocoa, copra, oil palm, rice), mining, manufacturing and transport.
“GPG intends to buy all the DMO and aggregate natural gas from the Pasca gas and liquids project and generate 200 MW of electricity using dry gas.
“We will also shortly commence work on a business plan for Liquefied Petroleum Gas (LPG) supply with Kumul Consolidated Holdings Ltd utilising this gas.
“Electricity will be generated via a power plan to be located on or within the vicinity of the Pasca project production platform, and electricity transported via subsea cables to transformers which will be located onshore near Kerema town on land owned by GPG.
“Electricity will then be supplied to customers.”