Incoming government may consider proposal

I WANT to discuss an innovative and sustainable petrochemical industry proposal paper presented at the National Conference of Engineers organised by the Institute of Engineers PNG (IEPNG) on April 18, 2017.
The incoming government may consider the proposal ‘Integration of an ethylene plant with PNG LNG plant using available ethane produced’.
Down streaming and Integration of an ethylene plant with the plant utilising available ethane produced from the common processing plant is proposed.
The ethylene plant can be constructed at Konebada Petroleum Park close to the LNG processing plant.
Current feasibility studies and the project research paper show that about 1.3 MTPA (million tonne per annum) ethane as feedstock from the PNG LNG processing plant is required.
And this is feasible, viable and ecits petrochemical derivative Liner Low Density Polyethylene (LLPE) and High Density Polyethylene (HDPE) plants are targeted at producing 0.636 MTPA LLDPE and 0.273 MTPA HDPE respectively for sale both locally and internationally to manufacture polyethylene products.
The balance of 0.091 MTPA will be other saleable by-products.
Papua New Guinea will have the largest integrated ethylene plant in the pacific region and it is targeted at generating huge revenue for the country.
And Papua New Guinea’s location in marketing high grade ethylene products is central and an eye opener to Asian and Pacific island countries.
Economic evaluation indicates that the proposed integrated ethylene, LLDPE and HDPE plants are promising.
The net present value (NPV) calculated is US$1,163.23 million with a payback period of 10 years.
The positive NPV indicates that the benefits of this proposed project outweighs costs.
Therefore the downstream petrochemical project is considered viable.
And this project is in line with PNG Vision 2050 Pillar Two – Developing our Resources & Creating Wealth.

Yongi Andale