Firms to jointly fund project

OIL Search Power Holdings Limited and Kumul Energy Limited have signed an agreement to jointly fund the evaluation of power projects in PNG.
The initial focus will be on the use of cost-effective domestically produced fuels for the Highlands, Lae, Port Moresby and coastal markets to support the Government’s and PNG Power Limited’s goals for expansion.
The companies have agreed to evaluate a domestic LNG concept that would ultimately see the supply of already discovered but undeveloped local gas as LNG flow into coastal power and industrial markets as well as other potential market destinations within the region.
Under the agreements, Kumul will also evaluate its entry into the existing Oil Search Biomass and Highlands IPP’s on commercial terms.
Phil Caldwell, managing director of Oil Search Power Holdings said: “Access to power is one of PNG’s most significant development challenges. Power is fundamental to the country’s socioeconomic development, underpins economic growth and helps improve living standards.
“It is estimated that only 13 per cent of PNG’s population is currently connected to a power grid.”
“The medium-term development plan introduced by the Government recognises the contribution to development of electrifying PNG and seeks to increase access for the population to the power grid to 70 per cent by 2030.
“To meet this target, PNG requires collaboration on multiple domestic power solutions that deliver scalable, reliable and competitively-priced energy through a significantly expanded distribution infrastructure.”