Investment of K340mil in gas power plant seen as a milestone

AN INVESTMENT of more than US$100 million (K341 million) by Papua New Guinea companies to produce electricity using gas produced locally is a milestone achievement for the country, says Kumul Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk.
He made these comments during a visit to the country’s first ever gas-fired power plant by Deputy Prime Minister and Treasurer Charles Abel, Oil Search managing director Peter Botten and himself to see the progress of work on the power plant by contractors.
The plant is 50:50 joint venture between KPHL and Oil Search Ltd.
According to NiuPower project director Michael Krause, the plant was 90 per cent complete with work expected to be completed next month and the keys handed over.
“Local Papua New Guinean companies have come together in a joint-venture arrangement and invested more than US$100 million to convert gas that is produced locally into clean, cheaper and reliable energy,” Sonk said.
“This is really an achievement which shows Papua New Guineans are capable of doing it.
“It’s going to be efficient, stable, and low-cost and it’s the first use of gas outside of PNG LNG Project to generate electricity locally.
“It’s really an achievement for us as a country.”
Sonk said KPHL as a shareholder was grateful to be involved in this second project after the PNG LNG project. “We were here last year launching this project,” he said.
“An investment of US$100 million-plus that we have both made to be owners of the new power station that’s going to put out 58 mega watts into the Port Moresby grid.
“It’s very encouraging as this is an investment by two PNG companies holding hands together and working on a power plant.”