Forex

PNG monitors progress in Japan

Business

DESPITE the tough market conditions regarding oil and gas in the Asian region, Japan needs substantial liquefied natural gas supplies after 2020 to fill expiring contracts, according to Kumul Petroleum Holdings.
Business Assets general manager Dr Michael Earle told business leaders at the PNG international business summit in Brisbane last week that the development in the Japanese market would benefit projects especially the Papua LNG and the expansion of the PNG LNG.
Earle explained how oil prices behaved in the market in view of their fluctuation since 2010. The current price hovers between US$40 to US$50 (K125 to K156) per barrel.
He said the low oil price translated to a low LNG price for spot sales and new contracts. This kind of development presented opportunity for buyers to negotiate lower prices for existing contracts
“Despite market conditions, Japan needs substantial new LNG supplies to fill expiring contracts post-2020,” he said.
“And this presents an opportunity for (the expansion of) PNG projects especially Papua LNG and PNG LNG.”
Meanwhile Treasurer Patrick Pruaitch said in spite of the gloom which continued to surround much of the global economy, and the oversupplied state of commodity markets, PNG was poised for a few more major high-impact resource ventures. “Among these is the proposed development of the P’nyang gas field in Western province by ExxonMobil and its joint venture partners,” he said.

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