First LNG loaded

By FRANK SENGE KOLMA
PAPUA New Guinea achieved a significant milestone yesterday, loading its first liquefied natural gas (LNG) at Caution Bay, Central, 20km outside Port Moresby.
Kumul Petroleum Holdings Ltd (KPHL) announced it will directly sell its LNG on the spot market from its share of excess LNG that was not committed to long-term sales agreements. Before this and since 2014, ExxonMobil had been marketing all LNG cargoes.
The buyer, PetroChina International Corporation Limited, yesterday dispatched its tanker named Wudang to Caution Bay to collect the LNG cargo.
KPHL managing director Wapu Sonk said a deal, following a February tendering process, had been concluded to sell 144,000m3 (cubic-meter) of LNG on FOB (free-on-board) terms to PetroChina.
Deputy Prime Minister John Rosso, State Enterprises Minister William Duma, Petroleum Minister Jimmy Maladina and Sonk were at the Napanapa LNG plant to watch the loading of the inaugural LNG cargo onto the tanker, Wudang.
Also present were ExxonMobil chairman and managing director Tera Shandro and a group of PetroChina officials led by managing director Li Shaolin.
“Today marks an important milestone for our company. It is the first time for Kumul Petroleum to market its equity share of LNG production from the PNG LNG project that is above the long-term sales purchase agreement volumes,” Sonk said.
“Kumul Petroleum has a 16.77 per cent equity in the 30-year PNG LNG project, which entitles us to sell about 14 LNG cargoes over the next four years.
“Once we conclude the acquisition of an additional 2.6 per cent of the PNG LNG project, this will provide us with more LNG to sell on the spot market.
“Kumul Petroleum is currently in talks with other potential buyers of LNG shipments from us in the future.”
Sonk said the Government never had a long-term vision for participating in the extractive sector and had gone through a number of companies. But, when Kroton was changed to KPHL, a winner was created.

The company now had assets worth US$3 billion (K11.5 billion).
Sonk said six years of training Papua New Guineans in marketing LNG finally paid off yesterday.
“KPHL has invested a lot in our people. We are very proud.”
The focus yesterday was also on ExxonMobil, the project manager of the PNG LNG, which all agreed had made this happen.
The long-term contracts were for 6.6 mtpa (million tonnes per annum) but it is now producing 8.5/6 mtpa, which puts about 2 mtpa in excess.
ExxonMobil’s Shandro said the project had delivered K24 billion to the State and landowning groups.
The supplementary volumes currently being produced gave PNG an opportunity to market its gas.
She too said it was an important milestone.
PetroChina’s Li said: “We will be here more times. It is an honor to be here. It is a beautiful country. It is very impressive.”
He was also impressed with the plant and the number of the local workforce, saying it was a model project.
PetroChina International Corporation Limited is currently Asia’s largest oil and gas producer, headquartered in China’s Dongcheng district, Beijing.