Local customers first in gas deal

By MARK HAIHUIE
SUPPLY should not be an issue for operators not to sell gas to the domestic market, says NiuPower chief executive Richard Robinson.
“We should never again allow ourselves to get into the situation where a bonafide domestic customer wanting to contract gas in this country, and prepared to pay the market price, is told that there is no gas available as it has already been committed to sales overseas,” Robinson said.
“This country should regard such a response as unacceptable. And those offering such a response could be considered to be risking their social licence to operate.”
Robinson was giving an overview of NiuPower, which is jointly owned by Oil Search and Kumul Petroleum Holdings, and its plans to use liquefied natural gas for electricity generation in Port Moresby.
The company was set up in 2016 with another 50 per cent joint venture for NiuEnergy that will be focusing on the national distribution.
“Both operate with a focus to ensure that PNG maximises the opportunity from PNG-produced gas to fuel electricity generation and industrial development across the country,” he said.
“The station will cost US$100 million and should be online in the first quarter of next year. It will connect into the Port Moresby grid via our new transmission line to be constructed from the power station in Gerehu.
“The investment itself is underpinned by the long-term purchase agreement with PNG Power and a gas sales agreement with the PNG LNG project.”