‘Sufficient, quality gas’

Business, Main Stories


THERE is enough, good quality supply of gas for the proposed second liquefied natural gas (LNG) project, developer InterOil Corp reiterated yesterday.
InterOil’s claim was based on a recorded gas flow of 705 million cubic feet per day at its Antelope 2 oil well located 2.3m south of Antelope 1 in remote Wabo, Gulf province.
“We exceeded on record right now  it is well over 700 million a day, one single well at a capacity of almost three to four trains.
“That is a record in PNG we need to be proud of in decades to come,” a happy Phil Mulacek, InterOil’s chief executive officer and chairman, said.
The gas flow yesterday, Mr Mulacek said, was equivalent to more than 100,000 barrels of gas in its liquid form a day, which was more than 100 million barrels a day of oil (energy) equivalent (about 112mbpd from one well).
The Antelope 1 gas flare conducted by Prime Minister Sir Michael Somare last March 2 recorded 382mmcfpd of gas which was certified by the Guinness Book of World Records Association, of which a copy was framed and handed to Gulf Governor Havila Kavo yesterday.
Antelope 1 reserve, according to Mr Mulacek, was 6.1 trillion cubic feet (tcf) which exceeded the required 4tcf.
“I think it puts Gulf in a very unique position in the world … the gas is there, the world record clearly illustrates,” Mr Mulacek said.
He also said both the InterOil-proposed project and the PNG gas project led by ExxonMobil were complementary.
Mr Mulacek said InterOil was confident the National Government had given its undertaking that it would deal with InterOil’s LNG project agreement, now with Department of Petroleum and Energy, after next Tuesday when the PNG LNG project reaches final investment decision (FID).
 “We took a lot of risks and we got the world’s biggest wells to prove it … and naturally LNG will follow, so we are comfortable,” he said, adding they are supportive of the Government’s undertaking to deal with them after next Tuesday.
Mr Kavo, while expressing congratulatory sentiments, said: “I believe a caliber of this kind of company can set the precedence anywhere in the world and PNG is no exception.”
Mr Kavo, while acknowledging that the project would generate benefits for PNG and Gulf province, called on the National Government to work together with InterOil and partners, and Gulf provincial government to have the project  agreement signed so that initial work on project development including the front end engineering and design (FEED) would start.
 “I believe it is a big discovery and it is good for PNG and also for the partners … and the LNG is needed right across the world and definitely two projects will not do any damage to this country,” he said.
Mr Mulacek said the LNG sector was the biggest currently for PNG and for InterOil, they would make sure they work with identified landowners and put up impact projects such as schools, among others, that would be long lasting.