KPHL signs deal for energy hub

National

The extension of the Western pipeline project to include the development of downstream facilities for a Kikori energy hub is a natural progression of a project of this size and nature, Kumul Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk says.
Sonk said the project was known as the Kumul LNG Project and early construction work was expected to start in 2019 if a final investment decision was approved, with first gas exports planned for early 2023.
He said that KPHL had executed an agreement with the Singapore office of Kellogg Brown and Root (KBR), a Houston (USA)-based global oil and gas engineering and construction service company, to provide the conceptual development and feasibility analysis for a downstream Kikori Energy Hub (KEH).
Announcing the KEH concept study, Sonk said the Pre-FEED of the Western pipeline project was complete.
“We are focusing on the downstream commercialisation options available to produce an economically sound project and how best we can create in-country value to the people of Papua New Guinea while maximising our return on investment,” he said.
Sonk said KBR was assessed as being an industry leader in LNG, power and petrochemical development, having the required capability and experience
available to conduct the KEH feasibility study.
He said the output of which was the identification of the most cost-effective downstream concept, inclusive of the LNG liquefaction technology and the
final facility location recommendation.
Kumul LNG Project director Jason Pollock said the scope of the concept and feasibility study undertaken to evaluate the potential KEH economics, would include a mid-scale LNG liquefaction and regional export facility to encourage future PNG electrification
via gas-driven generation in remote areas.
He said a 180MW power generation facility of which up to 100MW had been allocated to Western and Southern Highlands electrification via future grid connections, a methanol processing facility to enable local petrochemical bi-product production and a condensate stabilisation, storage and regional export facility.”
The Kumul LNG Project currently being proposed for Western and Gulf provinces, inclusive of the already proposed Midstream Western Province Pipeline, will facilitate the development of upstream static or
stranded gas and condensate resources.

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