Cabinet to study electricity plan

Business
Source:
The National,Friday June 10th, 2016

A US$2 billion (K6 billion) ethane-power plant transmitting electricity from Madang to Port Moresby, is expected to produce cheaper electricity, an official says.
A proposal from the American Ethane Company is to be submitted to Cabinet.
Chief executive officer John Houghtaling II met Petroleum and Energy Minister Ben Micah, Mining Minister Byron Chan and officials from the two departments and the Independent Consumer and Competition Commission yesterday.
The proposal will go before the Central Agencies Coordinating Committee chaired by chief secretary Isaac Lupari before it is submitted to Cabinet.
It has a construction time of 30 months.
“We’ve been here negotiating with the State since September 2015 regarding a power purchase agreement to build a power plant, that we hope, will provide the cheapest power in the country,” he told The National. “Together with some of our partners, we have one of the largest midstream oil and gas companies in the world and on the downstream, (with) GE (General Electric), our object is to bring in ethane gas which will be produced in GE very-efficient turbines here in Papua New Guinea.
“It will produce power that is significantly lower than any of the power being produced in the country.
“I’ve been in PNG for about four months and I experienced blackouts when I’m here because of the strain and the power needs of the country.
“This will provide not just additional power, but power that is exponentially cheaper than the current power offered.”