LNG project set benchmark

Business

THE successful record established by the PNG LNG project will advance similar projects in the country, former Chamber of Mines and Petroleum executive director Greg Anderson says.
Anderson said despite challenging prospects for the LNG market, the industry and the country were well positioned to maintain global competitivity.
“PNG has huge potential and I’m convinced that despite the challenges we have at the moment, we will get further LNG developments – whether it be an expansion to the current PNG LNG project or another stand-alone project,” Anderson said.
“The record and the reputation that PNG has established from the PNG LNG project is immense.
“Because the project was delivered successfully on time and now producing well above its nameplate capacity of 6.9mtpa (metric tonnes per annum), it has put us well and truly on the world stage as a significant LNG player.
“It’s going to be tough in future for LNG markets. But PNG is very well positioned competitively to be at the forefront of the next round of LNG projects.”
Anderson hopes disagreements surrounding the Mining Act review will be resolved soon.
He said it was also important to have a stable regulatory and taxation regime.
“There are disagreements to the Mining Act review and that is something I hope can be sorted out very soon,” he said.
“I am a little disappointed because I’ve seen PNG’s achievements from 2003 to 2012 when commodity prices were strong.
“The country benefited significantly because we had a consistent taxation and regulatory regime which were not changed even though things were buoyant.
“PNG kept everything stable and the results spoke for themselves. We got two mining projects in Ramu Nickel and Hidden Valley, and we delivered the Solwara 1 project and, of course, the LNG project.”

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