Govt stake in gas plan hung

By BIBIAN BARRENG
THE Government has yet to determine how much equity the State should have in the gas project although the 2008 National Budget has allocated a further K100 million.
This increased the total funding up to K600 million for the liquefied natural gas (LNG) projects along with other gas projects in the country.
Yet, while the Government remained undecided on the amount to commit, the deadlines were drawing close for the petroleum retention licences (PRLs) currently in the hands of ExxonMobil-Oil Search-led proposed LNG development.
The two PRLs were set to expire on March 24, 2008, with the Government being anticipated to extend the licences for another year or 18 months whilst keeping a tight leash on the joint venture partners.
Prime Minister Sir Michael Somare, at a recent function hosted by Liquid Niugini Gas in Port Moresby, noted that the country’s potential gas supply to the global LNG market would support a long-term viable natural gas industry in the country.
Liquid Niugini, a joint venture involving InterOil, Merrill Lynch Commodities and Pacific LNG, had noted that it was into the final stages of contract negotiations and was on track to award the FEED (front end engineering design) contract before the festive season.
The 2008 National Budget also allocated K50 million funding for the Konebada Petroleum park infrastructure.
The gas park project was created under a Government policy to look into the gas-based industries and was awaiting legislation to be passed for the project to become a State entity under the Konebada Petroleum Park Authority. .