Call to invest in other resources

 BY SHIRLEY MAULUDU

THE National Petroleum Company PNG (NCPC) says a limited supply of gas will be a challenge in venturing into commercialisation of gas in the country.

NCPC managing director Wapu Sonk said yesterday this was an issue the Government needed to address.

He was speaking during signing of a memorandum of understanding between NPCP and Sojitz Corporation of Japan, for possible development of a methanol project in the country. 

Sonk said any petrochemical project would need the Government’s support. 

He said as a country, if we wanted to diversify and develop the industrial base, we needed to prioritise the development of our gas, LNG and power generation as first priority, followed by other options such as petrochemical industry. 

“The challenge now goes back to the Government agencies, to help NPCP and Sojitz,” he said.

“It means that the governing agencies that are involved, Treasury Department, Department of Petroleum and Energy and State Solicitors Office – those key agencies must now lay the foundation for this key project to happen.

“I think the most important is the cash price. 

“Gas itself must be priced right. If you compare it with LNG pricing, to build a methanol, it won’t work. 

“The challenge now is really back to the Government. 

“I think that’s sort of the core of the next steps, and the next steps can only happen if we get it right. 

“We do have the resource, we do have the right amount of gas that’s been discovered so far, and would enough for couple more trains in PNG and couple more enough for power generation in PNG, enough for at least one more methanol plant.

“At least we are now negotiating and looking at development options. 

“I’d like to ask the appropriate agencies to think about what we are about to do here, which is taking the next steps forward in developing a methanol plant in PNG.”