THE Government has allocated K100 million in the 2008 budget for the development of the country’s gas reserves.
This comes on top of the K500 allocated in the 2007 supplementary budget, signifying the Government’s strong desire to assist the private sector develop this resource.
Since the cancellation of the PNG-Queensland Gas Pipeline project, the Government had been in talks with various potential players in developing Papua New Guinea’s vast gas resources in country.
Treasurer Patrick Pruaitch said these funds would be placed in trust accounts for the Government to take up equity in the gas commercialisation project.
This year, two proposals for liquefied natural gas (LNG) were submitted to the Government.
They are the project led by InterOil, Merrill Lynch and Global Pacific, costing around K6 billion, to develop the Elk wells in the Gulf province. And the ExxonMobil-led K10 billion project in Western. The Government had some rights to take equity in both projects.