NEC approves K375mil gas power project


THE National Executive Council has approved a K375 million gas-fired power project to be built near the LNG plant site outside Port Moresby.
Minister for Public Enterprise and State Investments William Duma announced the Cabinet decision on Friday at Kilakila.
He said the 57.78-megawatt gas-fired power project would be constructed by NiuPower Limited.
It is a joint venture company owned by Oil Search Limited and Kumul Petroleum Holdings Limited as an independent power producer to sell electricity to PNG Power Limited under a power purchase agreement.
He said the project would meet Port Moresby’s power demand.
Duma said the total costs of the power plant alone was US$115.1million (K375million).
“In order to transfer power generated by the gas-fired power plant to the Port Moresby grid, PNG Power Limited will be constructing double circuit 66-kilovolt transmission line from the power plant site to a new Gerehu substation,” he said.
Duma said the transmission line and the Gerehu substation including any associated transmission and distribution lines expansion would funded by PPL for K60 million.
Duma said the two significant power projects demonstrated that despite negative criticisms and predictions of doom and gloom, the Government remained committed to the delivery of reliable and affordable power to the people.