Papua LNG to build own pipeline

The National Business

By SHIRLEY MAULUDU
THE Papua LNG project will be constructing its own pipeline in Gulf, an official says.
Total E&P PNG Limited director corporate affairs Richard Kassman revealed this to The National following a concern raised by the Independent Consumer and Competition Commission (ICCC) on whether the operator of the project would consider building a separate pipeline for the project.
“We are aware of the position taken by ICCC Commissioner (Paulus) Ain on this matter,” Kassman said.
“Following the acquisition of Interoil by ExxonMobil, they are now partners in PRL 15 and the Papua LNG project and we choose not to comment.
“Yes, Papua LNG will be building its pipeline from PRL 15, down to the coast and across to Caution Bay (where PNGLNG’s LNG facility is located).”
The ICCC last month revealed negative impacts of competition in its independent assessment carried out into acquisition of InterOil by ExxonMobil.
Commissioner and chief executive Paulus Ain said the investigation was conducted pursuant to Section 5(1), S6 and S7 (1) of the ICCC Act.
Ain said based on information available through this investigation, ICCC considered that, if there were actual or potential competition concerns, they would affect competition in three potential markets.
He said the markets included:
l The market for the third-party access to natural gas pipelines and other field project facilities;
l the market for natural gas as alternate fuel for electricity generation; and,
l The market for natural gas as input in the petrochemical industries and production of liquefied petroleum gas.
“Given the three markets above, the ICCC is of the view that competition in the market for pipelines and other field project facilities access services may be the only market that would give rise to the potential competition concerns, because ExxonMobil is currently the only operator of the existing facilities,” Ain said.
“The ICCC is convinced that competition in the other two markets may not be significantly affected because the current supply of natural gas is to overseas markets.”