Haiveta seeks better limits in gas pact


GULF Governor Chris Haiveta says the key issue for his government in regards to the Papua LNG project is domestic market obligation (DMO).
He said the provincial government’s position on the proposed five per cent DMO should be the minimum and not the maximum.
Haiveta said limiting the DMO to the proposed five per cent would kill options for industrialisation for the next 30 years.
“PNG can’t stay at its current level of development for 30 years. We are growing and expanding,” he said.
“A five per cent DMO is 300 billion cubic feet (bcf) over 30 years, or less than 10 bcf per year.
“That is not sufficient, even for a power requirement of Wafi-Golpu mine size, leaving aside residential users and non-power users.
“We are committing ourselves to a 30-year deal in the gas agreement and cannot limit DMO to 2019 demand scenarios. We must take into consideration future development and industrialisation outlook.”