MP: Address LNG issues

 By Malum Nalu 

Hela Governor Anderson Agiru has called on Petroleum and Energy Minister Ben Micah to take up the pressing issue of benefits from the PNG LNG project for other provinces.

He said the interests of the other provinces were to be carried by the National Gas Corporation (NGC), established in Section 179 of the Oil & Gas Act. 

“When Sir Mekere Morauta took government following a motion of no-confidence in July 1999, he relegated NGC to a management company only, and so it was not invited to the signing of the Gas Agreement on May 22, 2008,” Agiru said. 

“At the UBSA (Umbrella benefits Sharing Agreement) in Kokopo (2009), we agreed that the issue of NGC and the interests of the other provinces of Papua New Guinea would be dealt with by the issues committee headed by the Minister for Petroleum and Energy. 

“That issue has never been dealt with until now.”

Agiru said Micah had the opportunity now to direct Kumul Petroleum Holdings to release some shares for the rest of the provinces of Papua New Guinea as stipulated in the Organic Law on Provincial and Local Level Governments. 

“The former Skate Government allocated four per cent of hydrocarbon interests for National Gas Corporation to be held for other provinces, but when the Mekere government took office, the law was amended and the four per cent taken out,” he said.

“When the Government did not exercise its options to take up the full 22.5 per cent of its options in the gas-to-electricity project (PDL 1), four per cent was to go to National Gas Corporation. 

“But when Sir Mekere took that out, the four per cent reverted to the State.

“Therefore, there is plenty of room for negotiations. 

“I call on provincial governments to take a keen interest in what Minister Micah is doing as it could work out to your enormous benefit.”