Landowners’ participation welcomed

KUMUL Petroleum Holdings Limited managing director Wapu Sonk says the new Port Moresby power project welcomes the participation of resource landowners.
He said this could be achieved through equity participation by the Mineral Resources Development Company in NiuPower Limited, the Independent Power Producer which had been created by KPHL and Oil Search Limited to underwrite the US$120 million (K385mil) gas-fired power station.
Sonk, also the chairman of NiuPower, was responding to concerns by Hela resource landowners that they had been denied the opportunity to participate in the new power station, which will use gas from the PNG LNG liquefaction plant near Port Moresby.
“NiuPower has always been keen to bring in additional equity partners,” he said.
“Of course, any equity participation must be on commercial terms consistent with the terms agreed between NiuPower and PPL.
“Otherwise, there will be substantial increases in the cost of power to PNG Power and its customers.”
Sonk said Kumul Petroleum and Oil Search had previously invited the State-owned Mineral Resources Development Company (MRDC) to take equity in NiuPower’s investments to ensure landowner participation in the development of the Port Moresby Power Station.
“This offer remains open and NiuPower is awaiting engagement from MRDC to discuss the commercial terms for equity participation,” he said.
“We, therefore, urge landowners to work constructively with MRDC to achieve their participation in this milestone power project.”
Sonk said following the establishment of the Port Moresby power station, generation requirements for the NCD would be covered for a number of years.
“With the creation of NiuPower and the development of the gas-fired Port Moresby power station, Kumul Petroleum and Oil Search directly contribute to the Government’s energy objectives of electrifying 70 per cent of PNG by 2030 – today estimated at around 10 per cent.”