Dirio project launched

THE country’s newest power project, Dirio Gas and Power Ltd, proposed to supply Port Moresby with 45 megawatts of power using natural gas from the PNG LNG project was commissioned yesterday.
Mineral Resources Development Company (MRDC) managing director and chief executive officer Augustine Mano said the commissioning of the project signalled the entry into power generation business for the first time by a nationally-owned company.
“It is a historic moment for landowners and a momentous occasion for the country,” Mano said.
“Dirio is owned by PNG LNG project landowners in Hela, Southern Highlands, Gulf, Western and Central.
“Their provincial governments are also partners in this project. I’m very proud of their decision to undertake this venture.
“The petroleum and energy sector in our country has huge potential in the upstream through to downstream value chain.
“For a long time, business along this value chain has been dominated by foreigners.
“That has to change, and that change begins now.
“Dirio Power is a game changer,” he said.
“The MRDC group and its trustee subsidiaries have the capacity to undertake this business.
“We have secured financing and retained the best expert advice to ensure this power project succeeds.”
Mano said the project was initially scheduled to be launched in July, but was delayed due to the Covid-19 pandemic, hence, the switch yard which was ordered from Italy, where it was manufactured, could not be transported to PNG due to the lockdown in Europe and other parts of the world.
“All the vital parts are in place now for us to go ahead with the launch.”
Mano said that the plant would operate three 15MW titan solar turbines, producing a total energy capacity of 45MW.
The company signed a power purchase agreement with PNG Power Ltd last September, agreeing to supply electricity at a price lower than other third party suppliers.
The Independent Consumer and Competition Commission issued an electricity generation licence to the company in January authorising it (Dirio) to generate and sell power to PNG Power.
Dirio aims to deliver cheaper power, making electricity more affordable.
The lower price could potentially lead to a reduction in tariffs for electricity users in the capital city.
“The economic benefit to everyone, businesses and households, from the availability of cheap and reliable power is immense,”Mano said. “I hope we can deliver power to other parts of PNG after its success in Port Moresby.”
The project costs around K350 million, which includes the cost of the turbines, construction of transmission lines and the switch yard.
Prime Minister James Marape, who is a shareholder/trustee of MRDC, officiated the commissioning ceremony.