First off-shore project allowed to proceed

Business

A MINISTERIAL determination was signed last Friday allowing Pasca LNG developer Twinza to proceed with their investment in the first off-shore developments in the country.
Petroleum Minister Kerenga Kua said the project, though small in relative terms to the PNG LNG and the Papua LNG, had the highest combined flow rate of gas condensate ever recorded in off-shore PNG and was likely to underpin the commercialisation of other offshore gas fields.
“I commend the developer Twinza Oil (PNG) Ltd for their confidence in investing over the years since 2011 and meeting all the requirements in the Oil and Gas Act of PNG,” Kua said.
“This is a first also for PNG as the site though in relatively shallow waters is about 90km out to sea in the Gulf of Papua.
“As required by the legislation, a development forum will still need to take place but the site is beyond the fishing grounds of the Gulf people so after the legal checks and social mapping, the State Solicitor’s office has deemed that there are no landowners.
“However, the signing of this ministerial determination now allows the benefit-sharing process between the Gulf government and the national government to move ahead,” Kua said.
He said the project proposal was in two phases: the harvesting of condensate and the reinjection of gas and the extraction and commercialisation.
“My approach as the minister is to have condensate gas produced at the same time or within a close time interval (within three years) so that we as the State do not lose value in the residual gas after extraction of the condensate.”
Twinza is a family-owned company that had previously operated in Myanmar, Thailand and Australia and its other partners and financiers have supported projects in the North Sea, Israel and Africa.
“We are confident that Twinza can concert the Pasca gas to liquefied petroleum gas (LPG) making it another first for our country,” Kua said.
“The construction phase of this development will bring much needed foreign exchange into the country as well as create industry and employment.”
“What still remains is for us to work towards the granting of the petroleum development licence (PDL) and the signing of the Pasca Gas Agreement over the next couple of months.”
Kua acknowledged the acting secretary Lohial Nuau and the team for their diligent work and looked forward to their continued contribution and support towards the conclusion and signing of the Pasca Gas Agreement.

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