Duma backs Mayur proposal and asks PNG Power to consider coal project


PUBLIC Enterprise and State Investments Minister William Duma has asked PNG Power Ltd (PPL) to consider a proposal by Mayur Resources for a coal-fired power project in Lae.
Mayur plans to build the power project with coal from Gulf, and has been supported by Energy Minister Sam Basil and Gulf Governor Chris Haiveta.
“As minister responsible, I would like to see PNG Power Ltd deliver cheap, reliable, safe and clean energy to its current and future customers after following all due processes,” Duma said in a statement.
“In this regard, I have requested PNG Power Ltd to consider the proposal by Mayur Resources and ascertain whether the proposal meets the development requirements and policies of PNG Power Ltd.”
Duma said PPL’s immediate focus was rehabilitating its aged hydro power stations and maximising output in the Ramu Grid serving Morobe, Madang and Highlands provinces.
“At the same time, PNG Power Ltd is also focusing on new gas and hydropower such as Ramu Grid, to realise fuel cost savings by switching from expensive diesel to cheaper domestic gas and renewable energy,” he said.
“PNG Power Ltd has my full support as it embarks on a long-awaited reform of the company and improvements in reliability.
“That will require large-scale investments in its transmission and distribution network, along with sensible, well-planned power-generation projects.
“However, PNG Power Ltd must follow its internal processes to ensure that any proposed power generation project is in line with PNG Power’s strategic, least-cost and sustainable power development plan for the Ramu Grid,” Duma said.
He said PNG Power was exploring various types of power generation sources, including coal, to determine the least-cost power generation solution.
He said this would meet the demand of current and future Ramu Grid customers, and take into account expected developments such as Wafi-Golpu project.