Alotau Accord 2

This is an open letter targeting Alotau Accord 2’s “economic development priority item number five on downstream processing of PNG’s natural resources”.
Leading operators of PNG’s oil and gas upstream exploration projects are reporting in the media that PNG has huge oil and gas reserves to last many years.
PNG and its investors have built and currently operate the largest PNG LNG processing plant in the Pacific region.
Looking into the future, it is anticipated to add trains 3 and 4 to the current existing trains 1 and 2.
The question is: how do we PNG, the owner of oil and gas, benefit to the maximum possible?
Do we just rely on the equity and be spectators?
Have PNG’s own national chemical engineers designed any feasible and economically-viable petrochemical industries?
Are relevant Government departments and statutory organisations, including State-owned enterprises, thinking out of the box to implement the Government’s vision and mission statements to bring about maximum benefit to the people of PNG?
Have we reviewed and regulated oil and gas policies to accommodate for domestic and local obligations, especially targeting condensates?
I did a PowerPoint presentation on PNG’s oil and gas and possible downstream processing projects proposal to top management at Public Enterprises and State Investment Department in late 2014.
I believe after digestion of the concepts presented, some policy changes may have taken place, targeting domestic obligations and downstream processing of our natural resources to finish products right in PNG.
It is understood from media reports that the prime minister is continuously emphasising downstream processing of not only oil and gas, but all other resources inclusive.
However, are the people in authority and implementers in departments, statutory government organisations and SOEs planning and developing project charters to bring about innovative and sustainable economic growth?
This focuses on industrialisation so that potential entrepreneurs can or will venture into manufacturing industries to produce finished products.
Public Enterprise and State Investment Department and the Government’s oil and gas company, Kumul Petroleum Holdings Ltd, are aware of an ethylene plant proposal designed by a national chemical engineer currently undergoing project management studies.
The proposal has been shelved since Jan 2015.
Time-consuming research was done on the integrated ethylene plant.
It shows the project is feasible and economically viable.
Ethylene feedstock is a base material for all other petrochemical industries and possible spin-off business activities.
Currently, further studies on project management knowledge and skills are undertaken at Curtin University, Western Australia, for planning the ethylene plant.
This is an initiative taken up by the project proponent for the good of PNG.
Can the Government push for such innovation and sustainable projects to generate huge revenue for PNG and the people?

Project Proponent