Outbreak not affecting LNG

By CLARISSA MOI
THE export of PNG’s liquefied natural gas (LNG) to China will not be affected by the coronavirus epidemic as it (export) was a long-term contract, a Chinese official says.
Jia Sun, the director of political affairs at the Embassy of the People’s Republic of China in Papua New Guinea told The National on Friday that the LNG was a long-term contract and the coronavirus epidemic was temporary and repairable.
“The coronavirus is short term,” he said.
“It’s just for one to two months. “We have to see longer term for the whole year and also for the Chinese production capability for the export as it is a concern (for PNG) right now. Because short of storage will cause prices of goods to go up.
“But for the export of LNG, it will not be affected in the short term because the LNG is a long-term contract.”
When asked about former Prime Minister Peter O’Neill’s recent statement that LNG exports had been turned back, Jia said the embassy updated their database once the LNG customers (in China) bought the product (LNG) and, therefore, were not aware of that situation at the moment.
China is the lead investor in the country according to the Investment Promotion Authority’s (IPA) foreign enterprise certification process.
Managing director Clarence Hoot noted during the Startup PNG convention in Port Moresby last December that this was followed closely by Australia, Malaysia, Philippines and Singapore.
While providing an update as the lead investor in the country and PNG being its largest trade partner in the Pacific, Jia said China had more than 40 companies operating in the country, creating over 6,000 jobs for local people.