Gas export to boost economy

Business, Normal

The National, Monday February 24th, 2014

 THE start of the LNG export this year will signal the biggest shift in the country’s economic landscape in more than two decades, PNG Chamber of Mines and Petroleum executive director Greg Anderson (pictured) said.

“When LNG exports commence on the second-half of this year, this will be the start of the most ambitious project ever undertaken in PNG, as highlighted by our recent conference theme ‘transforming the economy – the gas era’, Anderson said in a newsletter. 

 “As a single, integrated resource project, LNG directly encompasses more than 70,000 landowners, five provincial governments and 10 local level governments – all of whom will be direct financial beneficiaries of royalties and a development levy,” 

Anderson said mining and oil companies had represented the second largest contributor to the nation’s gross domestic product after agriculture. 

“When LNG exports start, the resource sector will overtake agriculture’s contribution to PNG’s total economic output.”

Anderson said the resource’s sector’s share of PNG exports was forecast to rise from around 80% this year to 90% next year. 

“Although this is a single project involving several shareholders, including PNG government, the LNG impact will be comparable to the structural change in the early 1990s with the launch of Hides gas to electricity project, Kutubu oil production and Porgera gold mine.”

By-product condensate from PNG LNG project would boost the country’s oil exports to 15.6 million barrels next year, its highest level since 2001 when 21.4 million barrels was exported, according to PNG Treasury projections. 

Built at a cost of US$19 billion (K46 billion), the PNG LNG project was nearing mechanical completion of all key components – the Hides gas condensation plant, the gas pipelines and the LNG plant outside Port Moresby.

“Commissioning activities are underway at LNG plant and at Hides Gas commissioning plant (HGCP).” 

“The onshore gas pipeline to HGCP has been welded to offshore section to complete the gas transmission line as well as a fibre optic cable alongside the pipeline, which will greatly enhance the nation’s information technology capacity”.