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PARLIAMENT yesterday approved K500 million to be parked in a gas equity
trust for the State’s participation in future commercialisation of gas
reserves in Papua New Guinea.
Finance and Treasury Minister Patrick Pruaitch said the purpose of the
Supplementary Appropriation Bill (gas equity trust) was to appropriate a
sum of K500 million which was set aside in 2005 and 2006 budgets and
kept in a trust account for financing equity in the PNG-Australia gas
pipeline project.
“Because that project had been shelved, the Government had decided to
close the trust account, meaning the funds are now returned to
consolidated revenue and to ask Parliament to re-appropriate the same
sum to be transferred to a new trust account.”
Minister Pruaitch said the funds would be held in a trust account until
it was needed to finance State equity in a project or projects for PNG-based
gas commercialisation.
“Several projects are taking shape for which Papua New Guinea’s natural
gas resources will be processed and pumped through pipelines to plants
where the gas will be processed to liquefied natural gas or LNG. From
these plants, the LNG would be shipped to LNG importing countries
probably in the Asian region,” Mr Pruaitch said.
He said the new Government remained committed to supporting PNG-based
projects for commercialisation of Papua New Guinea’s natural gas
resources.
“Moreover, the Government wants to participate in such projects as
equity partner once their viability is proven and a probable large
amount of direct State funding of equity will be needed.”
“So this K500 million should be re-appropriated right away for that
purpose,” he said.
He said the Government was also considering whether further amount
should be appropriated in the 2008 budget.barely extended beyond Port
Moresby and Lae and there were only about 60,000 users.
 
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